Making regular additional payments on the loan principal will provide singificant returns. People use different methods to accomplish this goal. Making a single extra payment once a year is perhaps the simplest to track. If you can't afford to pay an extra whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money. If, for example, you receive an unexpected windfall just a few years into your mortgage, investing several thousand dollars into your mortgage principal can significantly reduce the repayment period of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and duration of the loan.
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