Save on your Mortgage
Making regular extra payments on the loan principal will provide enormous savings. Borrowers can do this in various ways. Paying one additional full payment one time per year is likely the easiest to track. Of course, some people can't pull off such an enormous extra expense, so splitting one extra payment into 12 extra monthly payments works too. Another option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment each year. Each option yields different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgage contracts will allow additional principal payments at any time. You can take advantage of this provision to pay extra on your principal any time you get some extra money. If, for example, you were to receive an unexpected windfall three years into your mortgage, you could pay this money toward your loan principal, which would result in enormous savings and a shortened payback period. Unless the mortgage loan is quite large, even small amounts applied early can produce huge benefits over the duration of the loan.
Ashok Lakshmanan can walk you through the pitfalls of getting a mortgage. Give us a call at 630-717-3600.