Huge Interest Savings: Available to Anyone

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply to the principal. You pay more on principal in various ways. Paying one extra full payment one time every year is perhaps the simplest to track. If you can't pay an additional 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 extra monthly payment each year. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some borrowers can't manage extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay extra on your mortgage principal when you get some extra money. If, for example, you receive a very large gift or tax refund three years into your mortgage, paying several thousand dollars into your mortgage principal can significantly reduce the duration of your loan and save enormously on interest paid over the duration of the loan. Unless the mortgage loan is very large, even modest amounts applied early can produce huge savings over the life of the loan.

Executive Lending Group can walk you Executive Lending Group has your mortgage answers. Give us a call at (405) 822-1957.

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