Huge Savings on Interest: Available to Anyone

Paying consistent additional payments on your loan principal can yield big savings. People use different methods to accomplish this goal. For many people,Perhaps the simplest way to keep track is to make 1 extra payment a year. If you can't pay an extra whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment each year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks just can't make extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay extra on your principal when you get some extra money.

For example: five years after buying your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could apply this windfall toward your mortgage loan principal, which would result in significant savings and a shorter loan period. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

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

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