Simple Ways to Save on Your Mortgage
Paying consistent extra payments on the principal will provide singificant returns. Borrowers can accomplish this in various ways. For many people,Perhaps the easiest way to keep track is to make one additional payment per year. If you can't pay an extra whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment every year. These options differ slightly in reducing the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgages will allow additional payments at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, paying several thousand dollars into your home's principal can reduce the repayment duration of your loan and save enormously on mortgage interest paid over the life of the loan. For most loans, even this modest amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.