Paying consistent additional payments toward the loan principal will provide enormous savings. Borrowers employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to keep track is by making 1 additional payment every year. If you can't afford to 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 two weeks. The result is you will make one additional monthly payment in a year. Each of these options yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
It may not be possible for you to pay extra every month or even every year. But remember that most mortgages allow you to make additional principal payments at any time. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money.
For example: five years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. Unless the loan is quite large, even small amounts applied early in the loan period can yield huge benefits over the life of the loan.
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