Paying regular extra payments toward your loan principal will provide big returns. You can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment per year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Some people can't manage any extra payments. But you should remember that most mortgage contracts will allow you to make additional payments at any time. Whenever you come into unexpected cash, you can use this provision to make an additional one-time payment on your mortgage principal. For example: several years after moving into your home, you get a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay a portion of this money toward your loan principal, which would result in enormous savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early in the loan period can yield huge benefits over the duration of the loan.
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