Paying consistent additional payments on your principal balance can yield enormous savings. Borrowers employ various techniques to meet this goal. 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 additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgage contracts will allow you to make additional principal payments at any time. You can take advantage of this provision to pay extra on your principal any time you get some extra money.
If, for example, you were to receive a surprise windfall just a few years into your mortgage, investing several thousand dollars into your mortgage principal will significantly reduce the repayment period of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early in the loan period, could offer huge savings in interest and length of the loan.
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