Simple Ways to Save on Your Mortgage

Making regular additional payments on the loan principal will yield huge returns. People employ various techniques to accomplish this goal. Making a single additional full payment one time a year is perhaps the simplest to track. Of course, many people can't afford this huge extra expense, so splitting a single additional payment into twelve additional monthly payments works too. Another very popular option is to pay half of your payment every two weeks. The effect here is that you make one additional monthly payment every year. These options differ slightly in lowering the total interest paid and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra Payment

Some borrowers can't manage any extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. For example: a few years after buying your home, you get a huge tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your home's principal can shorten the period of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.

Hawk Mortgage Group can walk you through the pitfalls of getting a mortgage. Give us a call: (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