Mortgage Savings Tips

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Paying regular additional payments on the loan principal provides enormous savings. People accomplish this goal in several different ways. For many people,Perhaps the easiest way to organize this process is by making one extra mortgage payment per year. Of course, many folks will not be able to swing such a large extra payment, so splitting an additional payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying a half payment every two weeks. These options differ a little in reducing the final payback amount 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

It may not be possible for you to pay more every month or even every year. Remember that most mortgage contracts will permit you to pay extra on your principal at any time. You can benefit from this provision to pay down your mortgage principal any time you come into extra money.

Here's an example: five years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , you could apply a portion of this money toward your loan principal, which would result in huge savings and a shorter payback period. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.

Bridge View Funding can walk you the mortgage process. Give us a call at 415.931.2883.