## How to Pay Less Interest on Mortgage
Buying a home is a major financial decision. One of the biggest expenses associated with homeownership is the mortgage. The interest you pay on your mortgage can add up to tens of thousands of dollars over the life of the loan.
There are a few things you can do to reduce the amount of interest you pay on your mortgage. Here are 10 tips:
1. **Make extra payments.** One of the simplest ways to pay less interest on your mortgage is to make extra payments each month. Even a small extra payment can make a big difference over time. For example, if you have a $200,000 mortgage with a 4% interest rate and a 30-year term, making an extra payment of $100 each month would save you over $15,000 in interest over the life of the loan.
2. **Refinance your mortgage.** If interest rates have fallen since you took out your mortgage, you may be able to refinance your loan at a lower interest rate. Refinancing can save you a significant amount of money on interest, especially if you have a long-term mortgage.
3. **Get a shorter loan term.** The shorter your loan term, the less interest you will pay. If you can afford to make higher monthly payments, consider getting a shorter-term loan. For example, if you have a $200,000 mortgage with a 4% interest rate and a 30-year term, you could save over $50,000 in interest by getting a 15-year term instead.
4. **Make bi-weekly payments.** Instead of making monthly payments, make bi-weekly payments. This will help you pay off your mortgage faster and save money on interest.
5. **Round up your payments.** Round up your monthly payments to the nearest $10 or $20. This will help you pay off your mortgage faster and save money on interest.
6. **Take advantage of tax deductions.** The interest you pay on your mortgage is tax-deductible. Make sure you take advantage of this deduction on your tax return.
7. **Shop around for a lender.** When you’re looking for a mortgage, it’s important to shop around for the best interest rate. Compare rates from several lenders before you make a decision.
8. **Get a good credit score.** Your credit score will affect the interest rate you qualify for on a mortgage. Make sure you have a good credit score before you apply for a loan.
9. **Avoid late payments.** Late payments can damage your credit score and make it more difficult to get a good interest rate on a mortgage. Make sure you make your mortgage payments on time, every time.
10. **Consider a down payment assistance program.** There are a number of down payment assistance programs available to help first-time homebuyers. These programs can help you reduce the amount of money you need to put down on a home, which can save you money on interest over the life of the loan.
By following these tips, you can reduce the amount of interest you pay on your mortgage and save yourself a significant amount of money.
## Additional Tips
In addition to the 10 tips listed above, there are a few other things you can do to reduce the amount of interest you pay on your mortgage:
* **Negotiate a lower interest rate with your lender.** When you’re applying for a mortgage, be sure to negotiate the best interest rate you can. Compare rates from several lenders before you make a decision.
* **Make a larger down payment.** The larger your down payment, the less money you will need to borrow on your mortgage. This will save you money on interest over the life of the loan.
* **Choose a fixed-rate mortgage.** With a fixed-rate mortgage, your interest rate will not change over the life of the loan. This can help you protect yourself from rising interest rates in the future.
* **Make sure your mortgage is assumable.** If you decide to sell your home in the future, you may be able to transfer your mortgage to the new buyer. This can help you save money on closing costs and other fees.
By following these tips, you can reduce the amount of interest you pay on your mortgage and save yourself a significant amount of money.