3 Smart Mortgage Hacks That Can Save You Thousands of Dollars

You’ve found your dream home, and the mortgage rate looks great. But when you look at the 30-year term, you realize you’ll be paying a small fortune in interest alone. But what if you could hack your way through this and save thousands of dollars in interest? Below are proven hacks to help you do just that.

1. Biweekly Payments

Instead of making a single monthly payment, consider making half of the monthly payment every two weeks. This simple trick will result in making the equivalent of one extra mortgage payment per year, reducing the life of your loan by several years and saving you a substantial amount in interest.

2. Opt for Larger Mortgage Payments

There are a few methods you can use to increase your mortgage payments and decrease the life of your loan:

  • Maximize Your Payment: If you’ve bought a house that’s under your budget, consider making the maximum payments you can afford. For example, if your required payment is $1,500 but you can afford $2,200, pay the larger amount to trim years off your mortgage.
  • Round-Up Payments: Another approach is to round up your mortgage payment to the nearest hundred. If your monthly payment is $1,510, you can round it up to $1,600.
  • Gradual Increase: As your income grows over the years, consider increasing your mortgage payments gradually. This will accelerate the reduction of your loan’s principal amount.

3. Make an Extra Annual Payment

Making a lump-sum payment once a year, perhaps from a bonus, tax refund, or inheritance, can significantly reduce the life of your loan. Make sure to specify that this payment is to be applied to the principal amount only, not the interest.

Prepayment Penalties and Other Considerations

Before implementing these strategies, check with your lender for any prepayment penalties or conditions. Ensure that any extra payments are credited to the principal amount, as this is what will help you reduce your interest payments.


Owning a home is part of the American dream, but being in debt for 30 years doesn’t have to be. With these hacks, you can significantly cut down on the time it takes to pay off your mortgage and the amount of interest you’ll pay over the life of the loan. So why wait? Start hacking your mortgage payments today and pave the way for a financially secure future.

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