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Save Money On Your Mortgage In 3 Simple Steps

Save money on your mortgageIf you actually sit down and calculate the amount of interest you pay on a mortgage you’ll find yourself clutching your stomach and running for the bathroom. It’s disgusting. But hey, don’t worry! There’s hope. You can actually save money on your mortgage and lower the amount of interest you pay.

How Do You Save Money On Your Mortgage?

This infographic I dug up explains three simple things you can start doing right away and save yourself upwards of $65,541 on your mortgage (based on a $300,000 mortgage, amortized over 25 years.)

The first step you can take to start shaving money off your interest rates is to compare mortgage rates. This one is pretty straight forward. If you pay a lower interest rate, you’ll pay less interest. I highly recommend talking to a mortgage broker over your bank. A mortgage broker has access to multiple lenders including most of the major banks.

The second step you can take is to increase your payment frequency. Simply by making a bi-weekly payment rather than a monthly payment you’ll end up making an extra payment each year. This can cut almost two full years off your mortgage. Imagine that! You could have your mortgage burning party that much sooner!

The last thing you can do is to start making lump sum payments. I know, how can you afford that right? Challenge yourself to skip that latte or cappuccino every other day. That alone can amount to as much as $1,000 over the course of a year. There’s a limit to how much you can make in lump sum payments so check with your mortgage broker. But by reducing your principal, you’ll pay less in interest.

Take a look at the infographic below and let me know what you think in the comments.

Click on the image below to make it bigger.

save money on your mortgage infographic

Have you used any of these methods to save on your mortgage? Leave your comment in the box below.