Additional Payments Yield Huge Savings

Here's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which go toward your principal. You can accomplish this in various ways. Making 1 additional payment once every year may be the easiest to arrange. However, many folks will not be able to swing this huge additional payment, so dividing an additional payment into 12 extra monthly payments works too. Finally, you can commit to paying half of your mortgage 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 duration of your mortgage and lower the total interest you will pay over the life of the loan.

One-time Additional Payment

Some folks can't manage any extra payments. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any time. Any time you get some unexpected cash, you can use this rule to pay an additional one-time payment on your principal.

For example: a few years after moving into your home, you get a huge tax refund,a very large legacy, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, resulting in significant savings and a shortened loan period. For most loans, even this small amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

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