Save Big on your Mortgage

There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which apply toward your loan principal. You can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is to make one extra payment per year. If you can't afford to pay an extra whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people can't manage any extra payments. But remember that most mortgage contracts will allow you to make additional payments at any time. You can take advantage of this rule to pay down your principal when you come into extra money. For example: a few years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a cash gift; , you could pay this windfall toward your mortgage loan principal, resulting in huge savings and a shorter loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.

South County Mortgage can walk you At South County Mortgage, we answer questions about money-saving strategies every day. Call us: (401) 583-4150.

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