Save Big on Your Mortgage

There's a trick to reduce the repayment period of your mortgage and save thousands in interest: Make additional payments that apply toward your loan principal. Borrowers pay extra on principal in many different ways. For many people,Perhaps the simplest way to keep track is by making one additional mortgage payment per year. But many folks won't be able to swing such an enormous additional expense, so dividing a single extra payment into twelve extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks just can't make extra payments. But remember that most mortgages allow additional payments at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. If, for example, you were to receive an unexpected windfall five years into your mortgage, investing several thousand dollars into your mortgage principal can reduce the duration of your loan and save enormously on interest paid over the life of the mortgage 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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