Paying consistent extra payments toward your principal can yield huge savings. Borrowers can do this using a few different techniques. For many people,Perhaps the simplest way to keep track is to make one additional payment every year. If you can't pay an extra whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. These options differ slightly in lowering the final payback amount and shortening payback length, 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 extra every month or even every year. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay down your principal any time you get some extra money. If, for example, you receive a large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal can significantly shorten the duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the loan is very large, even a few thousand dollars applied early can yield huge savings over the life of the loan.
Do you have a question regarding a mortgage program?