Making consistent additional payments toward the principal balance will yield singificant returns. Borrowers make this happen in several ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment every year. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. Each option produces slightly different results, but each will significantly reduce the duration 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 permit you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you get some extra money. If, for example, you were to receive a surprise windfall five years into your mortgage, you could apply this windfall toward your loan principal, which would result in huge savings and a shorter payback period. Unless the loan is quite large, even modest amounts applied early can produce huge savings over the life of the loan.
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