Making regular additional payments toward the principal provides enormous savings. Borrowers pay against principal by employing various techniques. Paying one extra payment once a year is likely the easiest to arrange. But some people can't afford such a large extra payment, so splitting an additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Some folks can't manage extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. Any time you get some unexpected cash, you can use this provision to pay an additional one-time payment toward mortgage principal.
If, for example, you were to receive an unexpected windfall three years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in huge savings and a shortened payback period. For most loans, even this small amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.
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