There's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments which are applied toward your loan principal. You pay more on principal in many different ways. For many people,Perhaps the simplest way to keep track is to make 1 extra mortgage payment every year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. Each option yields slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some folks just can't make extra payments. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any time. You can take advantage of this provision to pay extra on your principal any time you get some extra money. If, for example, you receive a surprise windfall three years into your mortgage, investing several thousand dollars into your home's principal will significantly reduce the period of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.