Save on your Mortgage

Making regular additional payments toward your principal will yield huge savings. You pay against principal in many different ways. Paying a single extra payment one time per year is probably the simplest to arrange. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ slightly in lowering the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

Some people just can't make extra payments. Remember that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some unexpected cash, you can use this rule to make a one-time additional payment on your mortgage principal.

For example: a few years after buying your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can reduce the period of your loan and save enormously on mortgage interest over the duration of the mortgage loan. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.

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

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