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You Can Reduce Your Mortgage Interest Payments

Did you know that over the course of your home loan that you are likely to pay almost three times the price of your home in mortgage interest payments only? That's right, call it the miracle of compound interest in reverse: most of the money you will be shelling out each month will be to cover mortgage interest only. Now, I can imagine you are wondering if there is a way to reduce your mortgage interest costs. Yes, there is. Let' examine how you can save tens of thousands of dollars on mortgage interest payment and pay off your mortgage loan sooner.

30 years mortgages are common with 40 year mortgages picking up steam. Today, 50 year mortgages are possible in some areas such as California. All this means is that you will be paying on a mortgage for a significant part of your life.

I don't know about you, but the prospect of never owning the property you live in doesn't sound that appealing. Never mind shelling a major amount of mortgage interest payments over the life of the loan.

True, many people only stay in their homes for a short period of time before moving. On the other hand, at some point you are likely to find a home that you plan on staying in for as long as possible, maybe until the angel of death pays you a visit.

If you have heirs, then leaving an active mortgage in place means they will have to sell your home and divvy up the remaining monies amongst them. They'll get over it, but maybe you would prefer to leave a piece of property that you own outright instead of one that has a lien on it.

There are two ways for you to reduce your mortgage interest payments. The first, involves obtaining a loan that makes payments twice per month. The second, involves you making a thirteenth payment annually. In both cases the extra payment[s] will reduce your mortgage interest; in the latter example make certain that the mortgage lender applies the entire amount against the interest, not the principle.

If you follow either one of these methods, you will save tens of thousands of dollars in mortgage interest payments. Guess what? You can turn that 30 year mortgage into one that is paid off in less than 23 years too. All because you took a dynamic approach to reducing your mortgage interest burden.