1 Shorten Your Amortization ~ you can save the most if you are on shorter amortization from the beginning. If you started off with a 25 yr amortization for the lowest possible payment and you feel your finances are secure, it is wise to consider shortening your amortization period. Your payments may increase, but the interest you save could be substantial.

2 Change Your Repayment Plan ~ the more frequently you make payments, the lower interest you will be paying. You can make payments on a weekly, bi-weekly, semi-monthly, or monthly basis. By combining this with a shorter amortization period, you will be on the fast track to paying off your mortgage.

 

3 Pay Down Your Principal Faster ~ make sure that you understand your prepayment options, as they can vary from lender to lender. Each time a prepayment is made, or each time you increase your monthly payment, the balance owing and this monthly cost of interest is reduced -- thereby accelerating home ownership.

4 Negotiation The Interest Rate ~ it can only work to your advantage to your advantage to ask if there is flexibility in the rate you will be charged. A difference of 1/4% to 1/2% can make a substantial difference in the interest savings you will make over the term of your mortgage.

 

5 The Best Mortgage Possible ~ before you automatically renew your mortgage, make certain that you are being offered the best mortgage to suit your needs and lifestyle.