Paying regular additional payments toward your principal will provide big savings. Borrowers make this happen in a few ways. For many people,Perhaps the easiest way to keep track is by making one additional mortgage payment a year. If you can't pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The effect here is that you will make one extra monthly payment in a year. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts allow additional payments at any time. Whenever you come into extra cash, you can use this provision to pay a one-time additional payment on your principal. Here's an example: a few years after moving into your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the duration of the loan.
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