Paying consistent extra payments on your loan principal yields singificant savings. Borrowers can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment every year. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you make one extra monthly payment in a year. Each option produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Some people just can't make any extra payments. But remember that most mortgages allow you to make additional payments at any time. Any time you get some extra money, you can use this provision to make an additional one-time payment toward your mortgage principal. For example: five years after moving into your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, which would result in huge savings and a shorter loan period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.
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