Simple Ways to Save Big on Your Mortgage

Making regular extra payments on the principal balance provides singificant returns. Borrowers use different methods to accomplish this goal. Making 1 additional full payment once a year is probably the easiest to track. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option produces different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. Remember that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. Whenever you come into extra cash, consider using this rule to make an additional one-time payment toward principal. Here's an example: a few years after buying your home, you receive a larger than expected tax refund,a large inheritance, or a cash gift; , paying several thousand dollars into your home's principal will reduce the repayment duration of your loan and save enormously on interest paid over the life of the loan. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.

CHASE MORTGAGE, Inc. #317430 can walk you through the pitfalls of getting a mortgage. Give us a call: 4357556622.