Simple Ways to Save on Your Mortgage

Making regular additional payments on your loan principal yields enormous savings. People use different methods to meet this goal. Making a single extra payment once per year is likely the easiest to arrange. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option produces slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some borrowers just can't make any extra payments. Remember that most mortgages will allow you to make additional payments to your principal at any time. Any time you come into extra money, you can use this rule to pay a one-time additional payment on your mortgage principal. Here's an example: five years after moving into your home, you receive a huge tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your home's principal will shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the loan. For most loans, even this relatively small amount, paid early enough in the loan period, could offer big savings in interest and in the length of the loan.

Atlantic Financial Services can walk you Atlantic Financial Services can answer questions about these interest savings and many others. Give us a call at (732) 969-9300.

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