Many lending institutions allow borrowers to make additional payments to their mortgage. These are commonly known as pre-payment privileges and allow you to pay down the principal amount of the loan more quickly. Making additional payments can help you reduce the overall interest paid and potentially shorten the amortization of the loan as well. Here are some examples of the most common ways to do this;
- Annual Lump Sum Payments
- Increasing Regular Scheduled Payments
- Adjusting Payment Frequency
If you’re unsure about the terms of your mortgage or the potential impact of overpayments, it’s advisable to contact your lender directly or consult with our team for personalized guidance.