Making regular additional payments toward the principal balance will yield huge returns. You can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. Each option produces different results, 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 extra every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Any time you come into extra money, consider using this rule to make a one-time additional payment toward your principal. Here's an example: five years after moving into your home, you receive a larger than expected tax refund,a very large inheritance, or a cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shorter loan period. For most loans, even this small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.
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