Making consistent additional payments on the principal will provide huge savings. Borrowers make this happen in several ways. For many people,Perhaps the simplest way to organize this process is by making one additional payment every year. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one additional monthly payment each year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay extra every month or even every year. Keep in mind that virtually all mortgages will allow you to pay extra on your principal at any time. You can benefit from this rule to pay extra on your mortgage principal any time you come into extra money. If, for example, you receive a very large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal can significantly shorten the duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the mortgage loan is very large, even modest amounts applied early can yield huge savings over the life of the loan.
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