Purchasing a home can be one of the biggest investment decisions we make in our lives. It is important to understand how mortgages work since we don't usually pay all the money upfront to purchase a home.
Depending on the type of mortgage you choose (fixed vs. variable, open vs. closed) you can save tons on interest over the life of the mortgage.
One tip is to increase the frequency of your mortgage payments. Instead of paying once a month, choose a bi-weekly payment plan. You cut the payment that you would regularly pay in a month into half and pay it every two weeks. Since there are 52 weeks in a year you actually end up making 13 mortgage payments in a year instead of 12. That extra payment cuts down the amount you pay in interest over the life of the loan dramatically and will allow you to own your home mortgage free years sooner.
With little to no change in your life style you can shave off $1000's in interest. For more on mortgage basics check out this video:
