Paying consistent additional payments toward the loan principal will yield enormous savings. You can accomplish this in various ways. For many people,Perhaps the easiest way to keep track is by making 1 extra mortgage payment per year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options yields slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Some people just can't make extra payments. But you should remember that most mortgages will allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal any time you get some extra money.
Here's an example: several years after moving into your home, you receive a huge tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal will shorten the repayment period of your loan and save a huge amount on mortgage interest paid over the duration of the loan. For most loans, even a small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.
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