Additional Payments Yield Big Savings

	In the market for a mortgage? We can help! Give us a call at 802-253-2055. Ready to begin? Apply Here.

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 that apply to your principal. Borrowers accomplish this goal in a few different ways. Making one extra full payment one time a year is probably the simplest to arrange. Of course, some people can't swing this huge extra expense, so splitting a single extra payment into twelve extra monthly payments is a fine option too. Finally, you can pay a half payment every two weeks. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

One-time Additional Payment

Some borrowers just can't make extra payments. Keep in mind that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay extra on your mortgage principal any time you come into extra money.

For example: five years after moving into your home, you get a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this money toward your loan principal, resulting in huge savings and a shortened payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge savings over the life of the loan.

Primary Residential Mortgage, Inc can walk you At Primary Residential Mortgage, Inc, we answer questions about money-saving strategies every day. Give us a call: 802-253-2055.