Paying regular additional payments on your loan principal will provide singificant savings. Borrowers use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment a year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ slightly in lowering the total interest paid and shortening 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 more every month or even every year. But you should remember that most mortgages will allow additional principal payments at any time. Any time you get some extra cash, you can use this rule to pay an additional one-time payment toward mortgage principal. Here's an example: several years after moving into your home, you get a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay this money toward your loan principal, resulting in enormous savings and a shorter payback period. Unless the mortgage loan is very large, even small amounts applied early can yield huge savings over the duration of the loan.
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