Save on Your Mortgage
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Making consistent additional payments toward your loan principal provides huge returns. You pay against principal in many different ways. Paying one additional full payment one time per year is perhaps the easiest to arrange. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump-sum Additional Payment
Some people just can't make extra payments. Keep in mind that most mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money. If, for example, you were to receive a surprise windfall five years into your mortgage, investing a few thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and duration of the loan.