Making regular additional payments on the loan principal will yield huge returns. You can do this in various ways. Making 1 additional payment once a year may be the easiest to arrange. However, many people can't afford this huge extra expense, so splitting an extra payment into 12 additional monthly payments is a great option too. Another popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgage contracts allow you to make additional payments at any time. You can benefit from this provision to pay down your mortgage principal any time you come into extra money. Here's an example: several years after moving into your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , paying several thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
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