Simple Ways to Save on Your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments which apply toward your loan principal. You pay more on principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is to make 1 extra payment every year. Of course, some people will not be able to swing such an enormous additional payment, so dividing an extra payment into twelve additional monthly payments works as well. Another option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment every year. Each of these options produces slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

Some borrowers can't manage extra payments. Remember that almost all mortgage contracts will allow you to pay extra on your principal at any time. You can benefit from this provision to pay extra on your principal any time you come into extra money.

If, for example, you were to receive an unexpected windfall three years into your mortgage, paying a few thousand dollars into your home's principal will significantly reduce the period of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even this small amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

CHASE MORTGAGE, Inc. #317430 can walk you the mortgage process. Call us at 4357556622.