Paying consistent extra payments on your loan principal will yield singificant returns. Borrowers can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making one additional payment every year. 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 pay a half payment every two weeks. Each of these options produces slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
It may not be possible for you to pay extra every month or even every year. Remember that most mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal when you get some extra money. For example: several years after buying your home, you get a huge tax refund,a large inheritance, or a cash gift; , you could apply this money toward your mortgage loan principal, resulting in significant savings and a shorter payback period. Unless the loan is quite large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.
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