Paying regular additional payments on the loan principal provides huge savings. Borrowers make this happen in several ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment per year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Some people can't manage any extra payments. But you should remember that most mortgages will allow you to make additional payments at any time. Any time you get some unexpected money, consider using this rule to pay an additional one-time payment on your mortgage principal. If, for example, you receive a surprise windfall just a few years into your mortgage, you could pay a portion of this windfall toward your loan principal, which would result in significant savings and a shortened payback period. For most loans, even a small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.
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