Save Big on Your Mortgage

There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments that go to the principal. Borrowers use different methods to accomplish this goal. Paying a single additional payment one time a year is likely the easiest to arrange. But many folks will not be able to afford this huge additional expense, so splitting one extra payment into twelve extra monthly payments is a fine option too. Another very popular option is to pay half of your payment every other week. The result is you will make one additional monthly payment every year. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgages will allow additional principal payments at any time. You can benefit from this provision to pay extra on your principal when you come into extra money. Here's an example: five years after moving into your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , you could pay a portion of this windfall toward your loan principal, which would result in huge savings and a shortened payback period. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and duration 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.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question