Making regular extra payments on the principal will provide enormous returns. People use different methods to meet this goal. Making one additional full payment once every year is perhaps the easiest to track. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you make one extra monthly payment in a year. Each of these options produces slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Some borrowers just can't make any extra payments. But you should remember that most mortgages allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal when you come into extra money. For example: several years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a cash gift; , you could apply a portion of this windfall toward your loan principal, resulting in enormous savings and a shortened payback period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
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