Huge Interest Savings: Available to Anyone

Making regular additional payments on the principal will provide big savings. Borrowers accomplish this goal in a few ways. Paying a single extra full payment one time per year may be the easiest to keep track of. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment each year. Each of these options yields different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay down your principal every month or even every year. Keep in mind that most mortgages will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay extra on your principal any time you come into extra money. If, for example, you receive a surprise windfall three years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.

Tenby J. Dahman The Dahman Team can walk you At Tenby J. Dahman The Dahman Team , we answer questions about money-saving strategies every day. Call us at 3038627760.