Making regular extra payments toward the loan principal will yield singificant savings. You can pay extra on principal in various ways. Paying one extra payment one time per year is perhaps the easiest to track. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay half of your payment every other week. The result is you make one additional monthly payment every year. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Some borrowers just can't make any extra payments. Keep in mind that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal when you come into extra money. Here's an example: five years after buying your home, you receive a huge tax refund,a large inheritance, or a cash gift; , you could apply a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter loan period. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can produce huge savings over the duration of the loan.
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