Paying consistent extra payments toward your loan principal yields enormous savings. You can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment per year. However, some people won't be able to afford such a large additional expense, so dividing an additional payment into twelve additional monthly payments is a fine option too. Finally, you can pay a half payment every two weeks. Each of these options yields different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
It may not be possible for you to pay extra every month or even every year. Remember that most mortgages will allow you to pay extra on your principal at any point during repayment. Any time you get some extra cash, consider using this rule to make an additional one-time payment toward your mortgage principal. For example: several years after buying your home, you get a very large tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on mortgage interest paid over the duration of the loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.
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