Paying regular extra payments toward your loan principal will provide big returns. You can do this in several ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra payment every year. But some folks can't pull off such an enormous extra expense, so splitting a single additional payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. Each option produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Some folks can't manage extra payments. Keep in mind that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you come into unexpected money, you can use this provision to pay a one-time additional payment toward your principal. For example: five years after buying your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this money toward your loan principal, resulting in huge savings and a shortened payback period. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?