Paying regular additional payments toward the principal balance will provide singificant savings. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to keep track is to make 1 additional mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each option yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Some folks just can't make any extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay extra on your principal any time you come into extra money. For example: several years after moving into your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will shorten the repayment period of your loan and save a huge amount on interest over the life of the mortgage loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
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