Save on your Mortgage Loan
There's a trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make additional payments that are applied toward the loan principal. Borrowers pay against principal by employing various techniques. Making one extra payment once a year is probably the simplest to track. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. Each of these options yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage any extra payments. But remember that most mortgage contracts will allow you to make additional principal payments at any time. Any time you come into extra money, consider using this provision to make an additional one-time payment on mortgage principal. For example: several years after moving into your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal can significantly shorten the repayment period of your loan and save a huge amount on interest over the life of the loan. For most loans, even a modest amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.