Save Big on Your Mortgage

There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which are applied toward the principal. You pay extra on principal in many different ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra mortgage payment per year. However, some people will not be able to swing this huge extra expense, so splitting one additional payment into 12 additional monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that virtually all mortgage contracts will permit you to make additional payments to your principal at any time. Any time you get some unexpected money, you can use this provision to make a one-time additional payment toward principal.

Here's an example: a few years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, resulting in significant savings and a shorter payback period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.

AccessOne Mortgage can walk you At AccessOne Mortgage, we answer questions about money-saving strategies every day. Give us a call at 919-787-6080.