Making consistent additional payments toward the principal provides enormous returns. People employ various techniques to meet this goal. Making a single additional full payment once every year is perhaps the easiest to track. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Some folks can't manage any extra payments. But it's important to note that most mortgages will allow additional payments at any time. You can benefit from this provision to pay extra on your principal when you come into extra money.
For example: a few years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save a huge amount on interest paid over the life of the loan. Unless the loan is very large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
Do you have a question regarding a mortgage program?