Making consistent additional payments toward the loan principal provides huge savings. People pay extra in several ways. For many people,Perhaps the easiest way to keep track is to make 1 additional mortgage payment every year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. Each option yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Some borrowers can't manage extra payments. But it's important to note that most mortgages will allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you come into extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your home's principal will reduce the period of your loan and save a huge amount on mortgage interest paid over the life of the mortgage loan. For most loans, even this modest amount, paid early in the mortgage, could offer big savings in interest and in the duration of the loan.
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