When people discuss their finances, they rarely include their homes. They tend to forget that a house is just as much an investment as stocks and bonds, and a mortgage is a financial instrument that, from time to time, needs some fine tuning. Paying a few dollars extra each month can shave years off your mortgage. Not only will you own the place free and clear sooner, you'll save a bundle in interest. Keep good records, though, and make sure your lender credits the extra money to principal, not your escrow account.
Mistakes often take months to correct.
But if you check your files annually with the three major credit agencies, you can spot errors early and take care of them before they prevent you from improving your position. You should be able to cancel coverage once you pay your loan down to 75-80 percent of its current value. Speak with your lender for specifics. Even if you're not considering a move, you should pay attention to market conditions so you will know when it's time to consider refinancing, canceling PMI, or perhaps selling to put your fiscal house in order. The records of local tax authorities are often riddled with misinformation.