Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments which are applied to your loan principal. You can do this in various ways. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment a year. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. 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.
Some folks can't manage extra payments. But remember that most mortgages allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal any time you come into extra money.
For example: five years after moving into your home, you get a huge tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.
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