Paying regular extra payments on your principal balance yields huge savings. You can do this in several ways. Making a single additional full payment one time per year is likely the simplest to track. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay a half payment every other week. The result is you make one extra monthly payment each year. Each option yields slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Some borrowers can't manage any extra payments. But it's important to note that most mortgage contracts allow additional payments at any time. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money. Here's an example: several years after buying your home, you receive a very large tax refund,a very large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. Unless the loan is quite large, even small amounts applied early in the loan period can produce huge savings over the life of the loan.
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