Making regular additional payments on your loan principal provides huge savings. You pay against principal by employing various techniques. Paying 1 extra payment once a year may be the easiest to arrange. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Some borrowers can't manage any extra payments. Remember that virtually all mortgage contracts will allow you to make additional payments to your principal at any time. You can take advantage of this rule to pay down your principal any time you get some extra money. If, for example, you were to receive an unexpected windfall just a few years into your mortgage, paying several thousand dollars into your mortgage principal will reduce the period of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
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