Save on your Mortgage
Making consistent extra payments on your loan principal yields enormous returns. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making one additional payment every year. But many people won't be able to afford this huge additional expense, so dividing an extra payment into twelve additional monthly payments works as well. Another popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment in a year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages allow additional principal payments at any time. Any time you come into extra cash, you can use this provision to pay a one-time additional payment toward mortgage principal. If, for example, you receive a large gift or tax refund three years into your mortgage, you could apply a portion of this windfall toward your loan principal, resulting in enormous savings and a shorter payback period. For most loans, even a small amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.
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