Paying consistent additional payments toward your loan principal will provide enormous savings. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making one extra payment every year. If you can't pay an additional 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 popular option is to pay a half payment every other week. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts allow you to make additional payments at any time. You can take advantage of this provision to pay down your mortgage principal when you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, paying several thousand dollars into your home's principal will shorten the repayment duration of your loan and save enormously on mortgage interest paid over the life of the loan. For most loans, even this modest amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
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