Big Savings on Interest: Available to Anyone with a Mortgage

Making regular additional payments toward the principal can yield huge returns. Borrowers pay extra in a few ways. For many people,Perhaps the simplest way to keep track is by making one extra mortgage payment a year. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ a little in reducing the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgage contracts will allow additional payments at any time. You can take advantage of this provision to pay extra on your principal when you get some extra money.

If, for example, you receive a very large gift or tax refund five years into your mortgage, you could pay this windfall toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the mortgage loan is quite large, even small amounts applied early can produce huge benefits over the life of the loan.

Hawk Mortgage Group can walk you Hawk Mortgage Group can answer questions about these interest savings and many others. Call us at (443) 619-7900.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question