Making regular extra payments on your principal balance will yield enormous returns. Borrowers accomplish this goal in a few different ways. For many people,Perhaps the simplest way to organize this process is by making one extra mortgage payment per year. If you can't afford to pay an additional 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 pay half of your mortgage payment every other week. Each of these options yields slightly different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some borrowers just can't make extra payments. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. Whenever you get some unexpected money, you can use this rule to pay a one-time additional payment on mortgage principal. For example: several years after moving into your home, you receive a very large tax refund,a large inheritance, or a cash gift; , paying a few thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on interest over the duration of the loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge savings over the duration of the loan.
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