Paying consistent extra payments toward the principal will yield huge returns. Borrowers use different methods to accomplish this goal. Paying 1 additional payment one time a year may be the simplest to arrange. But many people will not be able to swing this huge additional expense, so splitting a single additional payment into 12 additional monthly payments is a fine option too. Finally, you can pay a half payment every two weeks. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Some folks just can't make extra payments. But you should remember that most mortgages allow additional payments at any time. You can take advantage of this provision to pay down your principal when you get some extra money. For example: several years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a cash gift; , you could pay this windfall toward your loan principal, resulting in significant savings and a shorter loan period. Unless the loan is very large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?