Save on your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments which go to the principal. People employ various techniques to meet this goal. Making 1 additional payment once per year is perhaps the simplest 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 write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay 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. But remember that most mortgage contracts will allow additional payments at any time. Whenever you get some extra money, consider using this provision to make an additional one-time payment on your mortgage principal. Here's an example: several years after buying your home, you get a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this money toward your loan principal, resulting in enormous savings and a shorter loan period. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.

Front Range Lending can walk you the mortgage process. Give us a call: 7202537070.