How To Save Money Paying Your Mortgage
In order to save money on your mortgage:
- Consider refinancing.
- For unbiased information about refinancing, click here.
- Make prepayments if permitted under your mortgage.
- Depending on your interest rate, it might make sense to make additional prepayments beyond your regular monthly payments.
- You can send an extra check or transfer money to the lender whenever you have extra money.
- Also check to find out if your lender allows you to pay half of the monthly payment every two weeks instead of the full amount once a month. This alternative reduces overall interest payments.
If you do make an extra mortgage payment, be sure to include a note indicating that you want the extra money applied to a reduction in your principal (the amount you borrowed).
To figure out whether or not prepaying a mortgage might be good for you, check out a calculator such as SmartMoney.com's calculator atwww.smartmoney.com/home/living/index.cfm?story=prepay .
NOTE: Only consider paying extra money toward your mortgage if you do not owe money on a debt which has a high-interest rate such as credit cards.