Paying consistent extra payments toward the loan principal will yield enormous returns. People accomplish this goal in several ways. For many people,Perhaps the simplest way to keep track is to make 1 additional payment per year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. Each of these options produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Some borrowers just can't make any extra payments. But you should remember that most mortgage contracts allow you to make additional payments at any time. You can take advantage of this provision to pay down your principal when you get some extra money. If, for example, you receive an unexpected windfall just a few years into your mortgage, you could pay this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.
Do you have a question regarding a mortgage program?