There's a trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments which apply to the loan principal. Borrowers make this happen in several different ways. For many people,Perhaps the easiest way to organize this process is to make 1 extra mortgage payment a year. If you can't afford to pay an extra whole payment in one month, 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 yields different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some folks can't manage extra payments. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay down your mortgage principal any time you get some extra money. Here's an example: several years after moving into your home, you receive a very large tax refund,a very large legacy, or a cash gift; , you could apply a portion of this money toward your loan principal, which would result in significant savings and a shortened payback period. Unless the mortgage loan is very large, even modest amounts applied early can produce huge savings over the life of the loan.
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