Additional Payments Provide Big Savings

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Paying consistent additional payments toward your principal will yield big returns. Borrowers pay extra in several ways. For many people,Perhaps the simplest way to keep track is to make one additional payment a year. But many folks won't be able to pull off such an enormous extra expense, so splitting one extra payment into twelve extra monthly payments is a fine option too. Finally, you can pay a half payment every other week. Each of these options yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. But you should remember that most mortgage contracts allow additional payments at any time. You can take advantage of this rule to pay down your mortgage principal when you come into extra money. For example: a few years after buying your home, you get a huge tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your home's principal will reduce the period of your loan and save a huge amount on mortgage interest over the duration of the loan. Unless the mortgage loan is quite large, even small amounts applied early in the loan period can produce huge benefits over the life of the loan.

Anita Martinez-Trumm can walk you Anita Martinez-Trumm can answer questions about these interest savings and many others. Give us a call at 303-596-8672.