Making regular extra payments on your principal balance will provide enormous savings. You pay extra on principal by employing various techniques. Paying a single additional full payment once every year is perhaps the simplest to keep track of. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The effect here is that you make one extra monthly payment each year. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional principal payments at any time. You can take advantage of this rule to pay extra on your principal when you get some extra money. If, for example, you receive a surprise windfall five years into your mortgage, you could apply this money toward your loan principal, which would result in significant savings and a shorter payback period. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and in the length of the loan.
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