Paying consistent additional payments on the loan principal can yield big savings. Borrowers make this happen in a few ways. For many people,Perhaps the simplest way to keep track is by making one additional mortgage payment every year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Some people can't manage any extra payments. But it's important to note that most mortgages allow you to make additional payments at any time. Any time you get some unexpected cash, consider using this provision to pay a one-time additional payment on your mortgage principal. For example: a few years after moving into your home, you get a very large tax refund,a very large legacy, or a cash gift; , you could apply this money toward your loan principal, resulting in huge savings and a shortened payback period. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge savings over the life of the loan.
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