Save on your Mortgage Loan

There's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make extra payments which apply to your loan principal. People make this happen in several different ways. Making one extra full payment once a year may be the simplest to keep track of. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks can't manage extra payments. But you should remember that most mortgages will allow additional principal payments at any time. Whenever you come into unexpected cash, you can use this provision to pay an additional one-time payment toward mortgage principal. If, for example, you receive a very large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal can significantly shorten the repayment duration of your loan and save a huge amount on interest over the duration of the loan. For most loans, even this modest amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.

Cottingham Mortgage Inc. can walk you the mortgage process. Give us a call: (800) 288-9693.

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