Making regular extra payments toward your loan principal will provide huge returns. Borrowers can pay extra on principal by employing various techniques. Making 1 extra full payment once every year may be the easiest to track. If you can't pay an extra 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 other week. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all 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. Remember that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your principal when you get some extra money.
If, for example, you receive a surprise windfall four years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. Unless the loan is very large, even small amounts applied early can produce huge benefits over the duration of the loan.
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