Nowadays, mortgages are one of the highest expenses a family has. It doesn’t help that interest costs in today’s market are way up. For those who are lucky enough to be approved for one, a sure way to lower your mortgage interest cost is to pay either weekly or every two weeks. Instead of monthly, if this option is offered. If not, ask for one.
When you make a bi-weekly payment, you are effectively paying off your mortgage a little faster. You may slightly be paying a little more you may not even see the difference. For example, for every $100,000 in mortgage at 10% (taking a high rate), and paying every 2 weeks, you would save about $50,000 in interest cost which will then reduce your total mortgage cost. Added to this, you end up paying about a month more in a year rather than twelve months if you pay monthly.
If you are paid monthly though, this is not possible. But another way to cut your interest cost is to get the longest possible term at the start. This gets you the lowest possible payment at the start. Then, increase your payment to keep up with inflation or as your salary increases. This strategy surely will get you to pay lower interest and pay off your mortgage earlier. Without any dent in your standard of living.