Making consistent extra payments on the principal balance yields big returns. Borrowers can accomplish this in various ways. Paying 1 extra full payment once per year is probably the simplest to keep track of. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Some people can't manage any extra payments. But it's important to note that most mortgage contracts allow you to make additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal any time you get some extra money. If, for example, you receive a surprise windfall just a few years into your mortgage, you could pay this windfall toward your mortgage loan principal, resulting in significant savings and a shortened loan period. Unless the loan is very large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
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