Mortgage Savings
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make additional payments that go to the loan principal. People employ various techniques to meet this goal. Making 1 additional full payment one time per year is probably the simplest to arrange. But some people will not be able to swing this huge extra expense, so splitting one additional payment into twelve extra monthly payments works too. Finally, you can pay half of your mortgage payment every other week. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Remember that most mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Whenever you come into extra cash, consider using this rule to make an additional one-time payment on principal. If, for example, you receive an unexpected windfall three years into your mortgage, you could pay this windfall toward your loan principal, resulting in huge savings and a shorter loan period. For most loans, even this small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.