Not only is your home your biggest asset, but it is also your most expensive one. Over the course of a 30-year mortgage, the average person winds up paying 2.5 times the purchase price of their home just in interest alone. That doesn’t mean there are not ways to reduce the amount of interest you pay. The following information will help you eliminate your mortgage sooner and put more interest money into your bank account.
Refinance to a Shorter Term
Refinancing to take advantage of a lower interest rate is a smart idea. However, if you reset your term, any savings you do realize could be negated. For example, if you have already been paying on a 30-year mortgage for eight years and refinance for another 30-year term, you have essentially started over, just with a lower interest rate.