Mortgage Savings

Making consistent extra payments toward your loan principal will provide big returns. You can pay against principal by employing various techniques. Making 1 additional payment once per year is likely the easiest to track. But many people can't swing this huge additional expense, so dividing one additional payment into twelve extra monthly payments is a great option too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options yields slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some borrowers can't manage extra payments. But remember that most mortgage contracts will allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your principal when you come into extra money. If, for example, you receive a very large gift or tax refund three years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in significant savings and a shortened payback period. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and in the length of the loan.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we answer questions about money-saving strategies every day. Call us at (808) 935-0678.