There's a trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make additional payments that go toward the principal. Borrowers accomplish this goal in several different ways. For many people,Perhaps the easiest way to keep track is to make 1 additional mortgage payment a year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you will make one additional monthly payment in a year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.
It may not be possible for you to pay extra every month or even every year. But remember that most mortgages allow you to make additional payments at any time. You can take advantage of this rule to pay down your mortgage principal any time you come into extra money. Here's an example: a few years after buying your home, you receive a very large tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save a huge amount on mortgage interest paid over the duration of the loan. For most loans, even a small amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.
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