There's a trick to reduce the repayment period of your mortgage and save you thousands in interest: Make additional payments that go toward your principal. Borrowers can pay against principal by employing various techniques. For many people,Perhaps the easiest way to organize this process is to make 1 additional mortgage payment every year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. Each option produces slightly different results, 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 extra every month or even every year. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you come into extra money.
For example: several years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, which would result in significant savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
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