Mortgage Saving Tips

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Making consistent additional payments toward your principal will yield huge returns. Borrowers use different methods to accomplish this goal. Making one additional full payment once every year is probably the easiest to track. But some people will not be able to swing such an enormous additional payment, so dividing a single extra payment into 12 extra monthly payments is a fine option too. Another popular option is to pay a half payment every other week. The result is you will make one extra monthly payment in a year. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay down your principal every month or even every year. Remember that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay down your principal when you come into extra money.

If, for example, you receive a surprise windfall five years into your mortgage, investing a few thousand dollars into your home's principal can significantly reduce the repayment period of your loan and save enormously on interest paid over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.

ENG Lending can walk you ENG Lending can answer questions about these interest savings and many others. Call us at 513-403-6260.



Jeff Cost | ENG Lending
Direct: 513-403-6260 | Fax: 859-356-3564 
11427 Reed Hartman Hwy
Cincinnati, OH 45241

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