Save on Your Mortgage

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Paying consistent extra payments on your principal balance can yield singificant savings. People make this happen in a few different ways. For many people,Perhaps the simplest way to organize this process is to make one extra payment every year. However, many folks will not be able to swing such a large additional expense, so splitting an additional payment into 12 extra monthly payments is a great option too. Finally, you can pay a half payment every other week. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump-sum Additional Payment

It may not be possible for you to pay more every month or even every year. But remember that most mortgages will allow you to make additional payments at any time. Any time you get some extra cash, you can use this provision to pay a one-time additional payment on principal.

If, for example, you receive an unexpected windfall four years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge savings over the life of the loan.

Manhattan Financials can walk you through the pitfalls of getting a mortgage. Call us: 718-766-9112.