Mortgage Savings

There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments that go toward your principal. Borrowers employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to keep track is by making 1 additional payment a year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some people can't manage any extra payments. But you should remember that most mortgages allow you to make additional principal payments at any time. You can take advantage of this rule to pay down your mortgage principal any time you get some extra money. If, for example, you receive a very large gift or tax refund four years into your mortgage, investing a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on interest over the life of the loan. For most loans, even this small amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you through the pitfalls of getting a mortgage. Call us: (808) 935-0678.