Save Big on your Mortgage Loan
Making consistent extra payments toward the principal balance provides enormous savings. Borrowers accomplish this goal in several ways. Paying a single additional payment once a year is perhaps the simplest to keep track of. However, some people won't be able to afford such a large additional expense, so splitting a single additional payment into 12 extra monthly payments is a fine option too. Another option is to pay a half payment every other week. The result is you make one extra monthly payment each year. Each option yields 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 more every month or even every year. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any time. Any time you get some unexpected money, you can use this rule to make a one-time additional payment on your principal.
If, for example, you receive a very large gift or tax refund three years into your mortgage, paying a few thousand dollars into your home's principal can shorten the duration of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. Unless the loan is quite large, even small amounts applied early can yield huge savings over the duration of the loan.