There's a trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments that go toward the loan principal. Borrowers make this happen in several ways. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment per year. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another option is to pay a half payment every other week. The effect here is that you will make one additional monthly payment every year. Each option produces different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. Keep in mind that most mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal any time you come into extra money. If, for example, you receive a large gift or tax refund five years into your mortgage, paying a few thousand dollars into your mortgage principal will significantly reduce the period of your loan and save enormously on interest over the duration of the loan. For most loans, even this relatively modest amount, paid early in the loan period, could offer big savings in interest and duration of the loan.
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