Making consistent additional payments toward the principal provides big savings. You can pay more on principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment a year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. Each option yields slightly different results, but each will significantly reduce 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. But you should remember that most mortgages allow you to make additional payments at any time. You can take advantage of 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 five years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, resulting in huge savings and a shortened payback period. Unless the loan is very large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.
AccessOne Mortgage can walk you At AccessOne Mortgage, we answer questions about interest-saving strategies almost every day. Give us a call: 919-787-6080.