Paying regular extra payments toward your principal balance will provide huge savings. Borrowers can do this using a few different techniques. Paying 1 additional full payment one time per year is perhaps the easiest to keep track of. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay a half payment every other week. Each option produces different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some people just can't make any extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. Any time you get some unexpected money, consider using this provision to pay a one-time additional payment on your mortgage principal.
For example: several years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal will shorten the period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.
Do you have a question regarding a mortgage program?