Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make additional payments which are applied to your principal. Borrowers can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making 1 extra payment a year. But many folks can't afford this huge additional payment, so dividing a single additional payment into 12 extra monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment in a year. Each option produces different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgages will allow you to pay extra on your principal at any point during repayment. Whenever you get some extra cash, consider using this rule to pay an additional one-time payment on your mortgage principal. For example: a few years after buying your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in huge savings and a shortened loan period. For most loans, even this relatively small amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
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