Paying regular extra payments toward the principal will provide singificant savings. Borrowers can accomplish this in various ways. For many people,Perhaps the easiest way to keep track is by making 1 additional payment every year. Of course, some people can't afford such an enormous additional expense, so dividing one extra payment into 12 additional monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay down your principal every month or even every year. Remember that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money. Here's an example: a few years after buying your home, you get a huge tax refund,a large legacy, or a cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in significant savings and a shorter loan period. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
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