Paying consistent extra payments on your principal balance will yield enormous savings. Borrowers can do this using a few different techniques. For many people,Perhaps the easiest way to organize this process is by making 1 additional payment a year. But many people can't swing this huge additional expense, so dividing an additional payment into 12 extra monthly payments works too. Finally, you can commit to paying half of your mortgage payment every other week. Each option yields slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Some people just can't make extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay down your mortgage principal any time you get some extra money. If, for example, you receive an unexpected windfall five years into your mortgage, investing a few thousand dollars into your mortgage principal can reduce the period of your loan and save enormously on interest paid over the duration of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
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