Paying consistent extra payments toward the principal balance will provide huge savings. Borrowers pay against principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is by making one additional payment per year. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every other week. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.
Some people can't manage any extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. Whenever you come into unexpected money, you can use this provision to make a one-time additional payment on your mortgage principal.
For example: a few years after buying your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can shorten the duration of your loan and save a huge amount on interest paid over the duration of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge benefits over the life of the loan.
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