Save Big on Your Mortgage
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Paying regular additional payments on the principal will provide significant savings. You can accomplish this in various ways. For many people,Perhaps the simplest way to keep track is to make 1 additional mortgage payment a year. Of course, some folks won't be able to swing this huge extra payment, so splitting a single extra payment into 12 extra monthly payments works as well. Finally, you can pay a half payment every two weeks. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
Some people can't manage any extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay extra on your mortgage principal any time you come into extra money.
If, for example, you receive a very large gift or tax refund just a few years into your mortgage, you could pay this windfall toward your loan principal, which would result in enormous savings and a shorter payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings over the life of the loan.