There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which apply to the loan principal. People accomplish this goal in several different ways. Making 1 extra full payment once a year may be the simplest to arrange. Of course, some folks will not be able to swing such an enormous additional payment, so splitting one additional payment into 12 extra monthly payments works as well. Another very popular option is to pay half of your payment every other week. The result is you will make one additional monthly payment each year. Each option yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Some people just can't make any extra payments. Keep in mind that most mortgages will allow you to pay extra on your principal at any time. You can benefit from this provision to pay extra on your principal any time you get some extra money. Here's an example: a few years after buying your home, you get a huge tax refund,a very large inheritance, or a cash gift; , you could pay this money toward your mortgage loan principal, which would result in significant savings and a shorter payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.