Save on your Mortgage Loan

Making consistent extra payments on the principal will yield singificant returns. Borrowers make this happen in a few ways. Making one extra full payment once every year is probably the simplest to track. But many folks will not be able to pull off such an enormous additional expense, so splitting a single extra payment into twelve extra monthly payments works as well. Another very popular option is to pay a half payment every other week. The result is you make one extra monthly payment each year. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some folks just can't make any extra payments. But remember that most mortgages allow additional payments at any time. You can take advantage of this rule to pay down your principal when you get some extra money.

If, for example, you were to receive a surprise windfall three years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. Unless the loan is very large, even modest amounts applied early in the loan period can yield huge benefits over the duration of the loan.

Hawk Mortgage Group can walk you At Hawk Mortgage Group, we answer questions about interest-saving strategies almost every day. Call us: (443) 619-7900.

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