Simple Ways to Save Big on Your Mortgage

Paying regular additional payments on your principal will yield enormous savings. You can pay more on principal in many different ways. Making a single extra payment one time per year may be the simplest to track. Of course, some folks won't be able to afford this huge additional expense, so dividing a single extra payment into 12 extra monthly payments works as well. Another option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment each year. These options differ slightly in lowering the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks just can't make any extra payments. But it's important to note that most mortgages allow you to make additional payments at any time. Any time you come into unexpected cash, you can use this provision to make an additional one-time payment toward mortgage principal.

If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could apply this money toward your loan principal, resulting in huge savings and a shortened payback period. For most loans, even this relatively small amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

Boardwalk Mortgage can walk you Boardwalk Mortgage can answer questions about these interest savings and many others. Call us at 1-800-606-2794.