Mortgage Saving Tips

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Paying consistent extra payments toward the principal will provide huge savings. Borrowers accomplish this goal in several ways. Making a single extra full payment one time per year is likely the easiest to keep track of. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgages will permit you to pay extra on 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. If, for example, you were to receive a large gift or tax refund five years into your mortgage, paying several thousand dollars into your home's principal will significantly shorten the period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.

At Security Mortgage Co, we answer questions about interest-saving strategies almost every day. Give us a call: 972.359.7766.

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