Simple Ways to Save Big on Your Mortgage

There's a trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments that are applied toward your loan principal. You can pay extra on principal in many different ways. Paying one additional full payment once every year is perhaps the easiest to arrange. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment in a year. Each option produces different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some folks can't manage any extra payments. But you should remember that most mortgages allow additional payments at any time. You can benefit from this rule to pay extra on your principal when you come into extra money. For example: five years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal will reduce the period of your loan and save a huge amount on interest paid over the duration of the loan. For most loans, even a small amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.

A Home's Best Mortgage, Inc. can answer questions about these interest savings and many others. Give us a call at (303) 650-9400.

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