Making regular additional payments on the principal balance can yield big savings. Borrowers accomplish this goal in a few different ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra mortgage payment a year. 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 half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. Each option yields different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Some folks just can't make extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. Any time you get some unexpected cash, consider using this rule to make a one-time additional payment on your principal. For example: five 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 money toward your mortgage loan principal, which would result in huge savings and a shortened payback period. Unless the loan is very large, even small amounts applied early can produce huge savings over the life of the loan.
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