Paying consistent additional payments on the loan principal provides enormous savings. People make this happen in several different ways. Making one additional full payment one time a year may be the simplest to track. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment in a year. Each option produces different results, but each will significantly shorten the duration 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 it's important to note that most mortgage contracts allow additional principal payments at any time. You can benefit from this rule to pay down your principal any time you come into extra money.
For example: a few years after moving into your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , paying a few thousand dollars into your mortgage principal can significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even a modest amount, paid early enough in the loan period, could offer huge savings in interest and in the duration of the loan.
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