Additional Payments Yield Huge Savings
Making regular additional payments toward the loan principal will provide significant savings. Borrowers can do this using a few different techniques. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment per year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you make one additional monthly payment every year. Each of these options produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgages will allow you to pay extra on your principal at any time. You can benefit from this provision to pay extra on your principal when you get some extra money. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your home's principal can reduce the repayment period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even this modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the length of the loan.