Simple Ways to Save Big on Your Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments which go to your loan principal. You pay against principal in various ways. For many people,Perhaps the easiest way to keep track is by making 1 extra mortgage payment every year. Of course, some folks can't pull off such a large extra expense, so splitting a single additional payment into 12 additional monthly payments is a great option too. Finally, you can commit to paying a half payment every other week. Each of these options yields different results, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay extra every month or even every year. Remember that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal when you get some extra money.

Here's an example: a few years after buying your home, you receive a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal will significantly shorten the duration 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 in the mortgage, could offer big savings in interest and in the length of the loan.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about these interest savings and many others. Call us: (808) 935-0678.