Making regular additional payments on the loan principal will provide enormous returns. You can do this using a few different techniques. For many people,Perhaps the easiest way to organize this process is to make 1 additional payment per year. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages allow you to make additional payments at any time. Whenever you come into unexpected money, you can use this provision to pay a one-time additional payment on mortgage principal.
If, for example, you were to receive a very large gift or tax refund five years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?