Save Big on your Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply toward the loan principal. You can pay against principal in many different ways. For many people,Perhaps the simplest way to keep track is to make 1 extra payment every year. But some people won't be able to afford this huge additional expense, so splitting an extra payment into 12 extra monthly payments is a great option too. Another very popular option is to pay a half payment every other week. The result is you make one additional monthly payment each year. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some borrowers just can't make any extra payments. But remember that most mortgages will allow additional principal payments at any time. You can take advantage of this rule to pay extra on your principal any time you get some extra money. For example: a few years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, resulting in huge savings and a shortened loan period. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.

Reliance Mortgage Service, Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 5623200510.

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