Save on your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make additional payments that are applied to your loan principal. Borrowers can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment a year. But some people won't be able to pull off such an enormous additional expense, so dividing an extra payment into twelve extra monthly payments works as well. 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 duration of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
Some people can't manage extra payments. But you should remember that most mortgages will allow 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 receive a surprise windfall three years into your mortgage, investing several thousand dollars into your home's principal can reduce the duration of your loan and save enormously on interest over the duration of the loan. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can produce huge savings over the life of the loan.