Mortgage Saving

Here's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make additional payments which are applied toward your principal. You pay against principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment per year. Of course, some people won't be able to swing this huge extra payment, so dividing one extra payment into twelve additional monthly payments is a great option too. Finally, you can commit to paying a half payment every other week. Each option produces slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump-sum Additional Payment

It may not be possible for you to pay down your principal every month or even every year. Remember that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some extra money, consider using this provision to make an additional one-time payment on your principal.

For example: five years after buying your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.

National Asset Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Give us a call at (855) 391-3290.