There's a trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make extra payments which are applied to the loan principal. Borrowers pay extra in several different ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra mortgage payment a year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay a half payment every other week. The result is you make one extra monthly payment each year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Some people can't manage extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any time. You can benefit from this provision to pay extra on your principal any time you get some extra money.
If, for example, you receive a very large gift or tax refund three years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. Unless the mortgage loan is quite large, even small amounts applied early can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?