Big Interest Savings: Available to Anyone with a Mortgage

There's a trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments that go toward your principal. Borrowers use different methods to accomplish this goal. Paying a single extra payment one time every year is likely the simplest to track. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgages will allow you to make additional principal payments at any time. Whenever you get some unexpected money, consider using this provision to make a one-time additional payment on your principal. Here's an example: a few years after moving into your home, you receive a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.

Hawk Mortgage Group can walk you At Hawk Mortgage Group, we answer questions about money-saving strategies every day. Give us a call at (443) 619-7900.

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