Question: >I’ve heard a few different things about saving money on a home loan. >I’m just wondering what the best way is? I’ve been told that if the >first payment is a double payment, it would knock 7 years off the >loan! Is this true? I’ve also been told that some loans can be set up >on a bi-weekly payment plan & that would get you a better interest >rate. Is this true? I realize that an extra payment a year would save >you money on the life of the loan. Should this extra payment be a >regular extra payment or would putting the same amount towards the >principle be better? Any help would be greatly appreciated.
>Thanks,
Answer: You will save a bundle of money if you make additional periodic payments. Make sure you mark the addiotional payments as “principal only”.
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