Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make additional payments which go to the loan principal. Borrowers can pay extra on principal in many different ways. Paying 1 extra full payment once a year is probably the easiest to arrange. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment every year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly shorten 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. Remember that virtually all mortgage contracts will allow you to make additional payments to your principal at any time. Any time you get some extra cash, you can use this rule to make an additional one-time payment on principal. Here's an example: several years after buying your home, you get a huge tax refund,a very large legacy, or a cash gift; , you could pay this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. For most loans, even this small amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.