Paying consistent extra payments on your loan principal can yield huge savings. People accomplish this goal in a few ways. Making one additional full payment one time a year may be the easiest to arrange. However, many folks won't be able to afford such a large extra expense, so dividing an additional payment into twelve additional monthly payments is a great option too. Another option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. These options differ a little in lowering the total interest paid and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Some folks can't manage any extra payments. But remember that most mortgages will allow additional payments at any time. Any time you come into unexpected cash, you can use this rule to make an additional one-time payment toward your principal. If, for example, you were to receive an unexpected windfall four years into your mortgage, you could pay this money toward your loan principal, resulting in huge savings and a shorter payback period. Unless the loan is very large, even modest amounts applied early can yield huge benefits over the life of the loan.
Do you have a question regarding a mortgage program?