Paying regular additional payments toward your principal balance will yield enormous returns. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making 1 extra payment a year. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay 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 they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Some borrowers just can't make extra payments. Remember that almost all mortgage contracts will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay down your mortgage principal when you get some extra money.
For example: five years after buying your home, you receive a huge tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal can shorten the period of your loan and save a huge amount on interest over the life of the loan. Unless the loan is quite large, even small amounts applied early can produce huge savings over the life of the loan.
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