Making consistent additional payments toward the loan principal provides enormous returns. Borrowers can do this in several ways. Paying a single additional payment one time every year may be the simplest to arrange. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Some borrowers just can't make any extra payments. But it's important to note that most mortgage contracts will allow additional principal payments at any time. Whenever you come into extra cash, consider using this provision to make a one-time additional payment on your principal. Here's an example: a few years after buying your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal can shorten the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the loan. Unless the loan is quite large, even small amounts applied early in the loan period can produce huge benefits over the life of the loan.
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