Paying consistent extra payments on the principal provides enormous returns. You can pay more on principal in various ways. Paying a single extra full payment once a year is likely the simplest to keep track of. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option produces slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Some people just can't make any extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. Any time you get some unexpected cash, consider using this rule to make a one-time additional payment on principal.
For example: several years after buying your home, you get a huge tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your home's principal can significantly shorten the period of your loan and save a huge amount on interest paid over the duration of the loan. Unless the mortgage loan is quite large, even small amounts applied early can produce huge benefits over the life of the loan.
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