Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make additional payments which are applied toward your loan principal. People use different methods to meet this goal. Making a single extra payment one time per year may be the easiest to keep track of. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment in a year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all 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. But it's important to note that most mortgages allow additional payments at any time. Any time you come into extra money, you can use this provision to make a one-time additional payment toward your mortgage principal. For example: a few years after buying your home, you receive a huge tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your home's principal can significantly shorten the repayment period of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and in the length of the loan.
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