Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments which apply toward the principal. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is to make 1 extra mortgage payment per year. 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 pay that additional amount monthly. Finally, you can pay a half payment every other week. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts allow you to make additional principal payments at any time. You can take advantage of this provision to pay down your principal when you come into extra money.
If, for example, you receive an unexpected windfall just a few years into your mortgage, you could pay this money toward your loan principal, resulting in significant savings and a shortened payback period. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
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