Save Big on Your Mortgage

Here'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. Borrowers can accomplish this using a few different techniques. Paying one extra full payment one time every year is perhaps the easiest to arrange. However, some people will not be able to afford such an enormous extra expense, so splitting an extra payment into 12 extra monthly payments works too. Another very popular option is to pay a half payment every other week. The result is you will make one extra monthly payment every year. Each of these options yields slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks just can't make extra payments. But remember that most mortgage contracts allow additional principal payments at any time. You can benefit from this provision to pay down your principal when you come into extra money.

If, for example, you receive a very large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your home's principal will significantly reduce the repayment period of your loan and save a huge amount on mortgage interest over the life of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.

Stepping Stone Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 5416833300.

Stepping Stone Mortgage

NMLS-235749 ML-3770

1140 Willagillespie Rd., Suite 13
Eugene, OR 97401