Save Big on Your Mortgage

Paying consistent extra payments toward the principal yields big returns. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment every year. Of course, some people will not be able to pull off such a large extra payment, so splitting an additional payment into 12 extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each option yields different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you come into extra money, you can use this rule to make an additional one-time payment toward your principal. Here's an example: a few years after buying your home, you get a very large tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save a huge amount on mortgage interest over the duration 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.

Norma Moreno-Squier can walk you Norma Moreno-Squier has your mortgage answers. Call us at 6023326989.

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Norma Moreno-Squier
NMLS#212839

New West Lending, Inc.

7310 N. 16th Street Ste. 170
Phoenix, AZ 85020