Prepaying your mortgage: How reducing your loan principal can lead to big savings
(WorldNews Business)

When you prepay your mortgage, it means that you make extra payments on your principal loan balance. Paying additional principal on your mortgage can save you thousands of dollars in interest and help you build equity faster. There are several ways to prepay a mortgage: • Make an extra mortgage payment every year. • Add extra dollars to every payment. • Apply a lump sum after an inheritance or other windfall. • Some combination of the above. How much can I save paying additional principal on a mortgage? The benefit of paying additional principal on a mortgage isn`t just in reducing the monthly interest expense a tiny bit at a time. It comes from paying down your outstanding loan balance with...