Huge Interest Savings: Available to Anyone with a Mortgage

There's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments which go toward the principal. Borrowers can pay extra on principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one extra payment per year. But some people can't afford this huge extra expense, so dividing one extra payment into 12 extra monthly payments is a great option too. Another very popular option is to pay half of your payment every other week. The result is you make one extra monthly payment in a year. Each of these options yields different results, but each will significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.

Additional One-time payment

Some people can't manage any extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some unexpected cash, consider using this rule to pay an additional one-time payment toward your principal.

Here's an example: several years after buying your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your home's principal can significantly reduce the period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.