Do It Yourself

payments from savings and family gifts.

3. Make principal prepayments.

If you have extra cash and don’t incur penalties for extra payments, pay more than your monthly mortgage payment by using a second check that’s clearly marked “principal prepayment.” Doing this will whittle down your principal a lot more quickly and can save you thousands of dollars over the life of your mortgage loan.

4. Opt for bi-weekly payments.

Instead of paying your mortgage monthly, pay half of your mortgage payments every two weeks. You’ll end making 26 half-payments, which equals 13 payments each year. Though one extra payment a year doesn’t seem like a lot, it can surprisingly shave years off your mortgage and save you a lot of money.

5. Earn interest on deposits.

If you’re buying a home, make sure you get interest on any deposits during an escrow period. Remember, you’re putting away thousands of dollars and the interest on these funds can be substantial, so make sure you’re getting your returns.

6. Shop around.

Before choosing a mortgage provider and locking in on an interest rate, always try to get at least 3 quotes. Have each lender break down the quote on paper so you can easily compare them later at home. Don’t be shy about using available financial tools to help your decision-making.

Do It Yourself Info by www.BestDoItYourSelf.Info