Paying regular extra payments on your loan principal yields enormous savings. You pay more on principal in various ways. For many people,Perhaps the simplest way to keep track is to make 1 additional payment a year. Of course, some folks won't be able to pull off such an enormous extra expense, so splitting one additional payment into twelve additional monthly payments is a fine option too. Another popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment in a year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. Any time you get some extra cash, consider using this rule to pay an additional one-time payment toward your mortgage principal. If, for example, you receive an unexpected windfall three years into your mortgage, you could pay this windfall toward your loan principal, which would result in huge savings and a shortened loan period. Unless the loan is very large, even small amounts applied early can produce huge savings over the duration of the loan.
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