Save on your Mortgage

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Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that are applied to your loan principal. People accomplish this goal in a few ways. For many people,Perhaps the simplest way to keep track is to make 1 extra payment per year. But some folks won't be able to afford such a large additional payment, so splitting a single additional payment into twelve additional monthly payments is a great option too. Another very popular option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment every year. Each of these options yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some folks can't manage any extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any time. You can benefit from this rule to pay extra on your principal any time you get some extra money.

If, for example, you were to receive a very large gift or tax refund four years into your mortgage, investing a few thousand dollars into your home's principal can reduce the repayment period of your loan and save enormously on interest over the life of the loan. For most loans, even this modest amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

The Dave Radke Team at Standard Bank and Trust can walk you The Dave Radke Team at Standard Bank and Trust can answer questions about these interest savings and many others. Give us a call at 312-806-9309.