Additional Payments Provide Huge Mortgage Savings

There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make additional payments that apply toward your principal. Borrowers accomplish this goal in several different ways. Paying 1 extra payment one time per year is perhaps the easiest to arrange. Of course, many folks won't be able to afford such a large extra expense, so dividing an additional payment into 12 extra monthly payments works as well. Another very popular option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment every year. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

One-time Additional Payment

Some borrowers just can't make any extra payments. But remember that most mortgages will allow you to make additional principal payments at any time. You can take advantage of this rule to pay down your principal any time you come into extra money.

If, for example, you receive a large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal will shorten the repayment period of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.

CHASE MORTGAGE, Inc. #317430 can walk you CHASE MORTGAGE, Inc. #317430 can answer questions about these interest savings and many others. Call us at 4357556622.