Here's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make extra payments which go toward your loan principal. People make this happen in several ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment every year. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Some folks just can't make any extra payments. Remember that most mortgages will allow you to make additional payments to your principal at any time. Whenever you get some unexpected cash, you can use this rule to pay a one-time additional payment on principal. If, for example, you receive an unexpected windfall just a few years into your mortgage, investing several thousand dollars into your home's principal can significantly reduce the duration of your loan and save a huge amount on mortgage interest over the life of the loan. Unless the loan is very large, even modest amounts applied early can yield huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?