Save Big on your Mortgage

There's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make additional payments which are applied toward the loan principal. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making one additional payment every year. But many folks will not be able to pull off such an enormous extra expense, so splitting one extra payment into twelve additional monthly payments works too. Another popular option is to pay half of your payment every other week. The result is you will make one additional monthly payment every year. Each option yields different results, 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 more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any time. You can benefit from this provision to pay extra on your mortgage principal when you get some extra money.

If, for example, you receive a surprise windfall three years into your mortgage, you could pay this money toward your mortgage loan principal, resulting in significant savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge savings 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. Give us a call: (443) 619-7900.

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