Save Big on Your Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make additional payments which apply toward the principal. Borrowers can accomplish this in several ways. Making a single additional full payment one time per year is perhaps the simplest to arrange. Of course, some people will not be able to pull off such an enormous additional expense, so dividing one additional payment into twelve additional monthly payments works too. Finally, you can commit to paying a half payment every other week. Each of these options yields slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgages will permit you to pay extra on your principal at any time. Any time you come into unexpected cash, consider using this provision to make a one-time additional payment on principal. If, for example, you receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save enormously on interest over the life of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.
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