Four Ways To Cut Mortgate Interest

If you’re like most people, you want to pay off your mortgage as quickly as possible. So a key mortgage strategy should be to find all of the ways you can actually pay less in interest, putting more of your money directly against the principal sum. So if you’re shopping around for a mortgage or have a mortgage due for renewal, consider these four interest-saving ideas:

  • Weekly or biweekly payments-if your cash flow will allow it, making smaller payments more often can save you thousands of dollars in interest payments over the life of your mortgage.
  • Shorter amortization-it only makes sense that if you shorten the period over which your mortgage is paid, that you’ll be mortgage free faster and pay less interest.
  • Lump sum payments-depending on the details of your mortgage, you may be able to make a monthly or annual lump sum payment that goes directly against the principal.
  • Larger down payment-the more money you can put down on the initial purchase, the less you have to borrow-and pay interest on. Be sure to consider all of your interest-saving options before you make your next mortgage move.

– From News Canada