Making regular extra payments toward your loan principal can yield enormous savings. Borrowers accomplish this goal in several ways. Paying one additional full payment one time a year is likely the simplest to track. If you can't pay an additional 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 other week. The effect here is that you will make one extra monthly payment each year. Each option yields different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some people can't manage any extra payments. Remember that virtually all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra cash, consider using this provision to pay a one-time additional payment on principal. For example: a few years after moving into your home, you get a very large tax refund,a very large inheritance, or a cash gift; , paying a few thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the duration of the loan.
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