Paying regular extra payments toward your loan principal will yield enormous savings. You can do this in several 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. Another very popular option is to pay a half payment every other week. The result is you will make one extra monthly payment in a year. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Some borrowers can't manage extra payments. But it's important to note that most mortgage contracts will allow you to make additional payments at any time. You can benefit from this rule to pay extra on your principal any time you come into extra money.
For example: a few years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could apply a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early can produce huge savings over the life of the loan.
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