Here's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments which apply to the principal. Borrowers employ various techniques to meet this goal. Paying 1 additional full payment one time every year is perhaps the easiest to arrange. Of course, many people can't swing such an enormous extra expense, so splitting a single extra payment into 12 extra monthly payments works too. Another popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment in a year. Each option produces different results, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any time. You can benefit from this rule to pay down your principal any time you come into extra money. If, for example, you receive a large gift or tax refund three years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. Unless the loan is quite large, even small amounts applied early can yield huge savings over the duration of the loan.
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