5 Smart Ways To Save Money on Your Mortgage

🔎 Disclosure: Heads up, babe: some links here are affiliate links, which means you might throw a tiny commission my way if you buy (zero extra cost to you). Only things you’d actually use and love get shared on this site.

1. Drop PMI as Soon as Possible

Private mortgage insurance (PMI) might protect the lender. But it drains your wallet.

Once you hit 20% equity in your home, there’s zero reason to keep paying it.

Getting rid of PMI early can save you thousands over the life of your loan.

Here’s why you should act fast:

• It adds up fast. PMI can cost $100–$300 a month for years.
  
• You don’t need it forever. Lenders often forget to cancel it unless you ask.
  
• It frees cash flow. That money can go straight to your principal.
  

👉 Here’s How You’ll Do It: Keep an eye on your loan balance and request PMI removal as soon as you reach 80% loan-to-value.

Make It Easy: Use a loan amortization tracker to see exactly when you’ll hit that 20% equity mark.

2. Shorten Your Loan Term

If you can handle slightly higher payments, switching to a shorter term saves a fortune in interest.

You’ll own your home sooner and cut years of payments off your timeline.

It’s one of the smartest moves homeowners can make.

Here’s how it helps you:

• Less total interest. You’ll pay thousands less over the loan’s life.
  
• Faster equity growth. Every payment builds ownership faster.
  
• Lower rates. Shorter terms usually come with better interest offers.
  

👉 Here’s How You’ll Do It: Ask your lender about refinancing to a 15-year mortgage when rates drop.

Make It Easy: Compare short-term refinance options through LendingTree to see how much interest you could save.

3. Pay Biweekly Instead of Monthly

Here’s a sneaky trick to shave years off your loan without feeling it.

Split your monthly payment in half and pay it every two weeks instead.

It sounds small, but it equals one full extra payment a year. automatically.

Here’s why it’s genius:

• Extra payment. You’ll make 13 full payments instead of 12.
  
• Less interest. Principal shrinks faster between payments.
  
• Easier budgeting. Matches your biweekly paycheck schedule perfectly.
  

👉 Here’s How You’ll Do It: Ask your lender to set up biweekly payments or automate them yourself through online banking.

Make It Easy: Use Undebt.it to visualize your biweekly progress and calculate your new payoff date.

4. Make One Extra Payment a Year

Just one extra payment a year can save you tens of thousands in interest.

It’s like giving your mortgage a little push forward every year.

You’ll hardly notice the difference. But your loan balance definitely will.

Here’s why it’s powerful:

• Faster payoff. It knocks months (or even years) off your term.
  
• Lower interest. You save more because the principal drops more quickly.
  
• Simple strategy. Easy to do once with bonuses, refunds, or tax returns.
  

👉 Here’s How You’ll Do It: Use your yearly bonus or tax refund to make one lump-sum payment directly toward your principal.

Make It Easy: Use a Betterment Cash Reserve Account to collect and store that extra payment automatically until you’re ready.

5. Use Windfalls to Pay Down Principal

When unexpected money lands in your account, don’t let it vanish into impulse buys.

Using those funds toward your mortgage brings your payoff date closer. and your stress level is lower.

It’s one of the most painless ways to save thousands long-term.

Here’s what counts as windfalls:

• Tax refunds. Perfect for principal payments.
  
• Work bonuses. Even partial use makes a difference.
  
• Cash gifts or side hustle money. Every bit chips away at interest.
  

👉 Here’s How You’ll Do It: The next time you receive extra income, send at least half straight to your mortgage principal before you spend it.

Make It Easy: Store windfalls in a Betterment Cash Reserve Account until you’re ready to make a lump-sum payment without touching your checking balance.

📌 SAVE IT FOR LATER! 📌