Paying regular additional payments on your principal balance will provide singificant savings. You pay more on principal in many different ways. For many people,Perhaps the easiest way to organize this process is to make 1 additional payment per year. If you can't pay an extra whole payment all at once, 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 other week. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Some borrowers can't manage any extra payments. But you should remember that most mortgage contracts will allow you to make additional payments at any time. You can benefit from this rule to pay extra on your principal any time you get some extra money.
Here's an example: several years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal can shorten the duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
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