Making regular extra payments on the principal will yield huge savings. You can accomplish this using a few different techniques. Making 1 additional full payment one time a year is probably the easiest to track. If you can't 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. Each option produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Some people can't manage extra payments. Keep in mind that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you get some extra money.
Here's an example: five years after moving into your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in significant savings and a shortened payback period. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
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