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.

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