Paying regular extra payments toward the principal will provide enormous returns. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment a year. But many folks can't afford this huge additional payment, so splitting a single extra payment into 12 extra monthly payments works too. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Some people just can't make extra payments. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this rule 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 very large tax refund,a very large inheritance, or a cash gift; , you could apply this windfall toward your loan principal, which would result in enormous savings and a shorter loan period. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge benefits over the life of the loan.
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