Do you want to pay off your mortgage sooner? Whether you've bought a home recently or you've been paying your mortgage for a while, making extra mortgage payments is a smart way to save money over the long term.
- Add a Small Dollar Amount Each Month. Commit to adding a small amount of money like $10 or $25 to your mortgage payment every month. You won't notice the difference, and you'll also decrease the number of months you spend paying your mortgage while saving money in the long run.
- Make Extra Payments Early in Your Loan Term. Execute your additional mortgage payments as frequently as you can early in your loan, depending on how much your current budget will allow. You'll end up paying your bills for a shorter amount of time and spending less money in the process.
- Make Lump-sum Payments Sooner Rather Than Later. Carry out larger extra mortgage payments in the first few years of your mortgage term to pay more now and save a lot in the long term. You'll make an immense dent in the overall amount you contribute to your loan and avoid paying thousands of dollars in interest.
Because making one or more extra mortgage payments per year can help tremendously,