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Your monthly mortgage payment is likely the highest bill you have to pay. What if you could find a way to reduce the amount you had to pay for your home – possibly by tens of thousands of dollars? There are some techniques you can employ to start saving on your mortgage today. In this article we’ll share 3 of the top ways to save a substantial amount over the life of your loan.

Savings Tip #1 – Refinance if you have a high interest rate. Today we are seeing historic lows in mortgage interest rates. If you can lock in a fixed mortgage at today’s rates of 4% you can save over $50,000 depending on your mortgage balance.

In order to qualify for a refinance you’ll need to have a good source of income, decent credit and some equity in your home. It’s worth taking some time to investigate your refinance options before interest rates begin to climb again. Financial experts agree that these low rates cannot last forever.

Savings Tip #2 – Pay your mortgage bi-weekly. This savings tip can save you approximately 7 years of payments if done consistently. Essentially you pay half of your monthly mortgage payments every two weeks. Because there are three months of the year where there are five weeks instead of four, by making a ½ payment every two weeks you will end up making an extra payment each year. While one extra payment doesn’t sound like a lot, it can actually shave tens of thousands of dollars off the total cost of your home.

The hard part about following a bi-weekly mortgage schedule are those months were you end up making an extra ½ payment. Be sure to budget well in advance for those extra payments so that you keep on track. If you can, set up automatic payments so you don’t have to think about paying your mortgage. Also, don’t be tempted to skip one of the extra payments – the key to this plan is being consistent.

Periodically ask the bank to send you a full statement of your mortgage so that you can verify that your extra payments are being applied directly to the principle. If you ever find that they aren’t, make sure to ask that the bank adjust their records.

Savings Tip #3 – Keep your remaining term when you refinance. Many times, when you refinance, they give you a new mortgage for 30 years. This lowers your payment but extends the time you’ll be paying on your home and ultimately tacks on years of interest payments. Instead, ask that you keep your remaining term when you refinance. That way, any difference in your payment will be due to the change in interest rate – not because you’re increasing the term of your loan.

By following a few of our simple tips you can shave tens of thousands of dollars off the amount you will end up paying for your home. Isn’t that money better invested in vacations, education or home improvements? Why spend unnecessary dollars on interest when it can be easily avoided?