Making consistent additional payments toward your principal balance will provide enormous savings. You can do this in various ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment every year. But many people won't be able to afford such an enormous additional expense, so splitting a single extra payment into twelve extra monthly payments works as well. Another option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment in a year. 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 the total interest paid over the life of the loan.
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your principal any time you get some extra money. If, for example, you were to receive a surprise windfall three years into your mortgage, paying several thousand dollars into your mortgage principal will significantly reduce the duration of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even this small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
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