Making regular extra payments toward your principal balance will provide big returns. Borrowers accomplish this goal in a few ways. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment per year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment in a year. Each of these options yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Some people just can't make extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. You can benefit from this rule to pay down your mortgage principal any time you come into extra money. If, for example, you receive an unexpected windfall just a few years into your mortgage, paying several thousand dollars into your home's principal will significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even this modest amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.
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