Paying regular extra payments on the principal will provide singificant savings. Borrowers can do this in various ways. For many people,Perhaps the simplest way to keep track is by making 1 additional payment every year. Of course, some folks won't be able to pull off such a large additional payment, so splitting an extra payment into twelve extra monthly payments is a great option too. 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 each year. Each option yields different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Some people can't manage any extra payments. Remember that most mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected money, consider using this rule to pay an additional one-time payment on mortgage principal. For example: several years after buying your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal will significantly shorten the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. For most loans, even this small amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.
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