Making consistent additional payments on the principal will provide enormous returns. Borrowers employ various techniques to accomplish this goal. For many people, Perhaps the simplest way to keep track is to make 1 additional payment every year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay half of your payment every other week. The effect here is that you will make one extra monthly payment every year. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Some people can't manage extra payments. But remember that most mortgages allow you to make additional payments at any time. Any time you come into unexpected cash, you can use this provision to pay an additional one-time payment toward mortgage principal. For example: several years after buying your home, you receive a larger than expected tax refund, a very large legacy, or a non-taxable cash gift; , you could pay this money toward your loan principal, which would result in huge savings and a shorter loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
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