Save Big on your Mortgage Loan
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make extra payments that are applied to the principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making 1 additional payment per year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay a half payment every other week. The result is you make one extra monthly payment every year. Each option yields slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
One-time Additional Payment
Some folks can't manage extra payments. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. Whenever you get some unexpected cash, consider using this rule to pay a one-time additional payment on mortgage principal.
For example: several years after moving into your home, you receive a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could apply a portion of this windfall toward your loan principal, resulting in significant savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early in the loan period can yield huge benefits over the duration of the loan.
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