Save Big on your Mortgage Loan
Making consistent additional payments on your principal will yield huge savings. People use different methods to accomplish this goal. Paying one additional payment once per year is probably the easiest to arrange. However, some folks can't pull off such an enormous extra payment, so dividing one additional payment into 12 extra monthly payments is a fine option too. Finally, you can commit to paying a half payment every two weeks. These options differ a little in lowering the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
Some people just can't make extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. Any time you come into unexpected cash, you can use this provision to make an additional one-time payment toward your mortgage principal.
Here's an example: five years after buying your home, you receive a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could apply this money toward your loan principal, resulting in huge savings and a shortened payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
