Big Savings on Interest: Available to Anyone with a Mortgage

Making consistent extra payments on the loan principal provides huge returns. Borrowers can pay against principal in many different ways. For many people,Perhaps the simplest way to keep track is to make one extra payment per year. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people can't manage any extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you come into extra money. If, for example, you were to receive an unexpected windfall three years into your mortgage, you could apply this money toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.

AccessOne Mortgage can walk you the mortgage process. Call us: 919-787-6080.