Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply to the loan principal. Borrowers can pay extra on principal in various ways. For many people,Perhaps the simplest way to keep track is by making one extra mortgage payment a year. Of course, some people can't afford this huge extra payment, so splitting an extra payment into 12 extra monthly payments works too. Another very popular option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment every year. Each option produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your principal when you come into extra money. For example: a few years after moving into your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal can shorten the repayment period of your loan and save a huge amount on interest over the duration of the loan. Unless the loan is quite large, even modest amounts applied early in the loan period can yield huge benefits over the life of the loan.
Do you have a question regarding a mortgage program?