Mortgage Saving Tips
Making regular additional payments toward the loan principal yields enormous returns. You can do this in several ways. For many people,Perhaps the simplest way to organize this process is by making one extra mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The result is you will make one additional monthly payment in a year. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgages allow you to make additional principal payments at any time. You can take advantage of this provision to pay extra on your principal any time you come into extra money. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, you could pay this windfall toward your loan principal, which would result in significant savings and a shorter loan period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.