Mortgage saving strategies and tips – Alliance Financial Resources, LLC

How to Reduce Your Mortgage

One Additional Mortgage Payment a Year

Theres a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loans principal.

This is the method being used by Bi-Weekly Mortgage Reduction Services and Bi-Weekly Mortgage Savings Programs. Only, when you do it yourself, you dont pay a third party unnecessary set-up costs and fees!

Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate

Extra Mortgage Payments/ Year	Principal & Interest	Additional Monthly Payment	SAVINGS	Total Paid	# of Years
0	$632.07	0	0	$227,542.98	29.92 / 359 mos.
1	$632.07	$52.68	$29,088.02	$198,454.96	24.12 / 290 mos.
2	$632.07	$105.35	$46,492.13	$181,050.85	20.5 / 246 mos.
3	$632.07	$158.02	$58,320.95	$169,222.03	17.92 / 215 mos.
4	$632.07	$210.69	$66,969.79	$160,573.19	15.92 / 191 mos.
5	$632.07	$263.36	$73,607.77	$153,935.21	14.34 / 172 mos.

One-time Payment

It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loans principal, resulting in significant savings and a shorter loan period.

Example:

With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.

If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). Thats a savings of $22,832.23 in interest.

We are a direct lender mortgage bank with lending authorization in the following states for Conventional, HUD, FHA, VA, USDA, Reverse, and Commercial lending.

We are a direct lender with offices in various locations focusing on providing home loans to the people in the communities we serve throughout the United States. We are here to help borrowers achieve the dream of home ownership and help them take advantage of today’s real estate investment opportunities.

Our loan professionals are highly trained in all of the various loan products currently available. We are well prepared to answer any questions you may have about buying a home or to assist you with analyzing your current home loan. Simply put, they are here to help you make informed right-fit mortgage decisions.

The customer experience is our number one priority. Communication is a very important part of our business model and our unique loan process, and our investment in technology reflects just that. We have mastered the ability to effectively communicate with all parties involved on each and every transaction keeping everyone up-to-date from the first phone call through funding. Our goal is to use all of our resources to make your transaction as smooth and efficient as possible.

With the experience, resources and exceptional service standards, you will see why we deliver…simply better home loans as we are working to expand our lending in other states as well.