How to Save Money on Your Mortgage: Tips and Tricks from the Experts

Are you looking to save money on your mortgage? With the right strategies and expert advice, you can reduce your monthly payments and overall loan costs. Here are some tips and tricks from the experts to help you save money on your mortgage:

1. Work With a Broker 

Working with the right broker ensures you'll get the best product for your needs.  While a low rate is great, it's not the only piece of the puzzle.  Having the lowest rate, but a product that doesn't suit your current and future needs can end up costing you in the long run.  

2. Consider a Shorter Amortization

While a 30-year mortgage may have lower monthly payments, opting for a 20 or 25-year term can save you money in interest payments in the long run.

3. Make Extra Payments

By making additional payments towards your principal each month, you can pay off your mortgage faster and save on interest costs. Even small extra payments can add up over time.

4. Refinance Your Mortgage

If interest rates have dropped since you took out your mortgage, consider refinancing to secure a lower rate. Be sure to calculate the break-even point to ensure refinancing makes financial sense.

5. Avoid Default Mortgage Insurance

If you can make a larger down payment (at least 20% of the home’s value), you can avoid paying default mortgage insurance, which can run in the $20,000 range, depending on the size of the mortgage.

6. Improve Your Credit Score

A higher credit score can help you qualify for better mortgage rates. Paying bills on time, reducing debt, and monitoring your credit report can all help boost your score.

7. Consider Biweekly Payments

Switching to biweekly payments instead of monthly payments can help you pay off your mortgage faster and save on interest. This strategy can result in an extra full payment each year.

Implementing these tips and tricks can help you save money on your mortgage and achieve financial freedom sooner. Consult with a financial advisor or mortgage expert to tailor these strategies to your specific situation and goals.