While interest rates play an important role in determining how much your borrowing will cost you, there are ways to work the mortgage system to lower this cost through the various features your mortgage may have:
Biweekly accelerated payments
This simple trick allows you to make 13 months’ worth of payments in a 12-month period, with the 13th month going toward your principal.
Lump sum payments
Did you know that your mortgage lender will allow a lump sum payment of 10 and 20% of the original mortgage amount each year toward your principal? Consider using a bonus from work or any small windfall toward your mortgage balance each year before spending the money elsewhere.
Annual mortgage payment increases
Most lenders will allow you to increase your mortgage payment by between 10 and 20% each year. If you get a raise, consider putting a portion of it toward this option.
Double up payments
You can double your payment anytime you like during your mortgage term, with most mortgage lenders.
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