Paying consistent extra payments toward your principal balance will yield big savings. People make this happen in several ways. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment every year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ slightly in reducing the total interest paid and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Some folks can't manage any extra payments. Remember that most mortgage contracts will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay extra on your principal when you get some extra money. For example: several years after buying your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shorter loan period. For most loans, even a relatively modest amount, paid early in the loan period, could offer big savings in interest and length of the loan.
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