Save Big on Your Mortgage
Making regular additional payments on the principal yields big savings. You can do this in several ways. For many people,Perhaps the easiest way to keep track is to make 1 extra mortgage payment per year. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage any extra payments. Keep in mind that most mortgages will allow 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 receive an unexpected windfall three years into your mortgage, you could apply this windfall toward your mortgage loan principal, which would result in enormous savings and a shortened payback period. For most loans, even a modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the length of the loan.