Paying consistent additional payments on the principal will yield enormous returns. You can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is to make 1 extra mortgage payment per year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment every year. Each of these options yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Some people can't manage extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some unexpected cash, you can use this provision to make a one-time additional payment on your principal. For example: five years after buying your home, you get a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early can produce huge benefits over the duration of the loan.
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