Making regular additional payments toward your principal balance will yield enormous savings. Borrowers can do this in several ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment per year. If you can't afford to pay an extra 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. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some borrowers can't manage extra payments. Remember that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay extra on your principal when you come into extra money. Here's an example: a few years after buying your home, you get a huge tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter payback period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer big savings in interest and length of the loan.
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