Save Big on your Mortgage

Paying regular additional payments on your loan principal yields big returns. People use different methods to meet this goal. For many people,Perhaps the easiest way to keep track is by making one additional payment per year. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you make one additional monthly payment in a year. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some folks just can't make any extra payments. Remember that most mortgage contracts will allow you to pay extra on your principal at any time. Any time you get some extra cash, you can use this provision to pay an additional one-time payment toward your principal. Here's an example: five years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the repayment period of your loan and save a huge amount on mortgage interest over the duration of the loan. Unless the loan is quite large, even small amounts applied early can yield huge benefits over the duration of the loan.

Bob Rutledge Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 3149139678.

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Bob Rutledge Mortgage

Loan Officer NMLS#: 297044

New American Funding 12321 Olive Blvd, ste 150
St. Louis, MO 63141