Big Savings on Interest: Available to Anyone

Paying regular additional payments toward your loan principal yields singificant returns. People employ various techniques to accomplish this goal. Making a single additional payment one time per year is probably the easiest to keep track of. But many people can't afford such an enormous extra expense, so dividing one additional payment into twelve additional monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some borrowers can't manage extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. Whenever you come into unexpected money, consider using this provision to make a one-time additional payment on mortgage principal. If, for example, you receive a large gift or tax refund three years into your mortgage, paying several thousand dollars into your home's principal can reduce the duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

Firelight Mortgage Consultants can walk you through the pitfalls of getting a mortgage. Give us a call: 3032282254.

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111