Making regular additional payments on your loan principal will provide enormous savings. You pay more on principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment every 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. Finally, you can pay a half payment every other week. Each option yields different results, but they will all significantly shorten 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 more every month or even every year. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal when you get some extra money.
If, for example, you receive a surprise windfall three years into your mortgage, investing a few thousand dollars into your home's principal can shorten the repayment period of your loan and save enormously on interest over the life of the mortgage loan. For most loans, even a small amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.
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