Paying regular additional payments on your loan principal provides big savings. Borrowers use different methods to meet this goal. Making 1 additional full payment one time per year is likely the simplest to arrange. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay a half payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some extra cash, you can use this provision to pay a one-time additional payment toward mortgage principal.
Here's an example: several years after buying your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , you could apply a portion of this money toward your loan principal, resulting in huge savings and a shorter loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
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