Big Interest Savings: Available to Anyone

There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which apply toward your principal. Borrowers pay more on principal by employing various techniques. Paying 1 extra payment one time every year may be the easiest to keep track of. Of course, some folks will not be able to swing such a large additional expense, so splitting an extra payment into twelve additional monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each option produces 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 more every month or even every year. But you should remember that most mortgages will allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your principal any time you come into extra money. For example: several years after moving into your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your home's principal will significantly reduce the repayment duration of your loan and save a huge amount on mortgage interest over the duration of the loan. Unless the loan is quite large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.

U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call: 305-967-7200.

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