There's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make additional payments which apply toward the loan principal. Borrowers can accomplish this in various ways. Making 1 extra payment once every year is perhaps the easiest to keep track of. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Some folks can't manage any extra payments. But it's important to note that most mortgage contracts will allow additional principal payments at any time. Any time you get some extra cash, consider using this provision to make a one-time additional payment on mortgage principal.
For example: a few years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your home's principal can significantly reduce the period of your loan and save enormously on interest over the life of the loan. Unless the loan is quite large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
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