Making consistent additional payments on your principal balance will yield huge savings. Borrowers can pay against principal in various ways. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment per 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. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Some borrowers just can't make any extra payments. Keep in mind that most mortgage contracts will permit you to make additional payments to your principal at any time. You can take advantage of this rule to pay extra on your principal when you get some extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, resulting in huge savings and a shorter payback period. Unless the mortgage loan is very large, even modest amounts applied early can produce huge benefits over the duration of the loan.
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