Making consistent additional payments on your loan principal provides big returns. Borrowers can do this in various ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional payment every year. If you can't afford to 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. Another very popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
It may not be possible for you to pay down your principal every month or even every year. Remember that almost all mortgages will allow you to pay extra on your principal at any point during repayment. Any time you come into extra cash, you can use this rule to make a one-time additional payment on your principal. For example: five years after moving into your home, you receive a huge tax refund,a 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 loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.
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