There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that are applied to your principal. People employ various techniques to accomplish this goal. Paying one additional payment one time a year is perhaps the simplest to arrange. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Some people can't manage any extra payments. But remember that most mortgage contracts allow additional principal payments at any time. You can take advantage of this provision to pay down your principal when you come into extra money. If, for example, you receive a very large gift or tax refund three years into your mortgage, investing a few thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save enormously on mortgage interest paid over the life of the loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.
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