When you take out a mortgage, you’ll have a minimum monthly payment you have to make. But if you pay more, not only can you pay off the loan faster, but you’ll also be able to save money on interest.
Before you start thinking about prepayment, it’s in your best interest to speak with your lender. Some will have strict terms when it comes to prepayment, and there may be prepayment penalties.
When deciding how much extra to pay, go through your budget to see if there is an area you can pull money from. It doesn’t have to be a large amount, either. Even adding $71 to a monthly mortgage payment can save thousands of dollars in future interest.
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