Making consistent additional payments toward your principal provides enormous savings. You can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment per year. However, many people can't pull off such an enormous extra expense, so splitting an additional payment into 12 additional monthly payments is a great option too. Finally, you can commit to paying a half payment every other week. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your principal any time you come into extra money.
If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
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