There's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make additional payments which are applied to the loan principal. Borrowers accomplish this goal in several different ways. Paying a single additional full payment one time per year is probably the simplest to arrange. However, many people can't afford such a large additional payment, so dividing a single additional payment into 12 extra monthly payments is a great option too. Finally, you can pay a half payment every other week. Each option produces slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some folks just can't make any extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra cash, consider using this provision to pay a one-time additional payment on your mortgage principal.
For example: several years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your home's principal will shorten the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. Unless the loan is very large, even modest amounts applied early can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?