Compare rates by contacting several financial institutions. Make your down payment as large as possible Providing the largest down payment you can possibly afford will reap exponential rewards down the road and savings in overall monthly payments 3. Reduce the amortization period Shortening the loan repayment period or amortization period is a great way to pay your mortgage off quicker. It will result in higher monthly payments, but will make big gains in building up your equity and allow you to pay less in total interest over the life of the mortgage. A prepayment option allows you to pay part of your mortgage principal before it is due, thus reducing the amortization period.
Restrictions usually apply and can include a prepayment penalty.
As well, prepayment is often limited to specific amounts and times for prepayment. But if you have a prepayment option written into your mortgage contract you can make balloon payments each year, which will be taken directly off the principal. Frequent payments also save you money on your mortgage. Bi-weekly payments mean you'll make 26 payments in a year, the equivalent of 13 months of mortgage payments as opposed to 12 monthly payments. If you are confident that interest rates won't rise, it pays to get the shortest term loan you can afford.