Huge Savings on Interest: Available to Anyone with a Mortgage

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There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments that are applied toward the principal. People use different methods to meet this goal. For many people,Perhaps the simplest way to organize this process is to make 1 additional mortgage payment per year. However, many people can't afford such a large extra expense, so dividing a single additional payment into 12 extra monthly payments works too. Another option is to pay half of your payment every other week. The result is you will make one additional monthly payment each year. Each of these options yields different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some borrowers can't manage any extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. You can take advantage of this rule to pay down your mortgage principal when you come into extra money.

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

FNB Town Square Mortgage can walk you FNB Town Square Mortgage can answer questions about these interest savings and many others. Call us at (817) 821-5179.