There's a trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments that are applied to your principal. People pay extra in a few ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The effect here is that you will make one additional monthly payment every year. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Some people just can't make any extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any time. Any time you get some unexpected cash, consider using this rule to make a one-time additional payment toward mortgage principal. For example: a few years after buying your home, you get a very large tax refund,a large inheritance, or a cash gift; , paying several thousand dollars into your home's principal will shorten the repayment period of your loan and save a huge amount on interest over the duration of the loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.
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