Save Big on your Mortgage Loan

Paying regular extra payments toward the principal provides enormous savings. People accomplish this goal in several different ways. Making one additional payment once every year is likely the simplest to arrange. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options produces different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.

Additional One-time payment

Some people can't manage any extra payments. But remember that most mortgages allow additional payments at any time. You can take advantage of this provision to pay down your principal when you get some extra money. Here's an example: five years after moving into your home, you get a huge tax refund,a very large inheritance, or a cash gift; , you could apply a portion of this money toward your loan principal, which would result in enormous savings and a shorter payback period. For most loans, even a modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.

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