Paying consistent additional payments toward your loan principal will provide big savings. You can pay extra on principal by employing various techniques. Making 1 additional payment one time a year is likely the simplest to track. 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 very popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment each year. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Some people can't manage any extra payments. Remember that almost all mortgage contracts will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, you could apply this money toward your loan principal, which would result in enormous savings and a shortened payback period. For most loans, even this small amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.
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