There's a trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments which are applied to your loan principal. People use different methods to accomplish this goal. Paying 1 extra payment once every year is probably the simplest to arrange. If you can't 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 a half payment every other week. The effect here is that you make one extra monthly payment each year. These options differ slightly in lowering the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgages allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your mortgage principal any time you come into extra money. For example: several years after moving into your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on mortgage interest over the life of the loan. Unless the loan is quite large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
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