A trip to your local mortgage broker could end up saving you big money on your monthly payments or save you thousands in the end on long term interest. Taking a close look at your mortgage statement will show you exactly how much of the payment your are making is going to the principal loan amount. If you are early on in the term of your loan you will likely find that not very much of that payment is going toward reducing the principal balance. If you can afford to, and have the option on your loan to pay additional toward the principal balance, doing so will save you payments on the end of your loan. This is a good practice, especially if you plan to keep the home you are buying. The savings can really add up.
For example, on a $125,000 loan at 5% interest for a 30-year term, you can save over $19,000 in interest and shave over four years payments off the end of your loan, just by adding an additional $50 toward the principal balance with each payment.
Refinancing your mortgage is another great option for many borrowers who qualify for a lower interest rate than they currently have. The best way to find out all of your options is by visiting or calling a mortgage broker.
Calculate savings on paying more at http://www.mortgagecalculator.org/calculators/what-if-i-pay-more-calculator.php
