Save on your Mortgage

Making consistent additional payments toward your loan principal yields huge returns. Borrowers pay extra on principal in various ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra mortgage payment a year. Of course, some folks will not be able to swing such a large additional payment, so splitting an extra payment into twelve extra monthly payments works as well. Another popular option is to pay a half payment every other week. The effect here is that you make one extra monthly payment every year. These options differ slightly in lowering 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.

One-time Additional Payment

It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgage contracts will permit 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 get some extra money. Here's an example: several years after buying your home, you get a huge tax refund,a large legacy, or a cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in huge savings and a shorter loan period. For most loans, even a small amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we answer questions about money-saving strategies every day. Call us at (808) 935-0678.