Making consistent additional payments toward your principal yields enormous savings. Borrowers can pay more on principal by employing various techniques. Paying one additional full payment one time per year may be the simplest to keep track of. If you can't 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. Finally, you can commit to paying a half payment every other week. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages will allow additional principal payments at any time. You can benefit from this rule to pay down your principal any time you get some extra money.
For example: several years after buying your home, you get a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, which would result in enormous savings and a shortened loan period. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge savings over the duration of the loan.
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