Simple Ways to Save Big on Your Mortgage
Paying consistent extra payments toward the loan principal will yield enormous savings. People accomplish this goal in a few different ways. Paying one extra full payment once every year may be the simplest to arrange. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you make one extra monthly payment each year. Each option yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some borrowers just can't make extra payments. But remember that most mortgages will allow additional principal payments at any time. You can take advantage of this rule to pay extra on your mortgage principal any time you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, you could pay this money toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
