How Extra Payments Save You Money
Every extra dollar you pay goes directly to principal reduction. This lowers the balance that accrues interest, creating a compounding savings effect. Even $100/month extra on a mortgage can save tens of thousands in interest and years off your loan.
Strategies for Making Extra Payments
Round up payments to the nearest hundred. Apply tax refunds, bonuses, and raises. Switch to bi-weekly payments (26 half-payments = 13 full payments per year). Even one extra payment per year makes a significant impact.