Extra Payments Provide Huge Savings

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments which are applied to your principal. Borrowers can pay extra on principal in various ways. Making a single extra full payment once a year may be the easiest to track. However, many folks won't be able to swing this huge additional expense, so splitting one extra payment into 12 additional monthly payments is a great option too. Another popular option is to pay a half payment every two weeks. The effect here is that you will make one extra monthly payment in a year. Each of these options produces different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay down your mortgage principal when you get some extra money.

Here's an example: a few years after moving into your home, you get a very large tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on mortgage interest over the duration of the loan. For most loans, even a modest amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.

Integris Loans can walk you the mortgage process. Give us a call: 8014134570.

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Integris Loans

9980 S 300 W Ste 200
Sandy, UT 84070