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The longer you have a mortgage, the more interest you pay. The more interest you pay, the more money banks make. Here are a few ways that you can keep more money for yourself:

1. Accelerated Bi-Weekly Payment Option
   A good way to shorten your amortization may be to choose the accelerated bi-weekly payment option. This allows you to pay half of your monthly payment every two weeks. By doing this, you end up making the equivalent of one extra monthly payment a year. To see how this works, see the following example.

Everyone knows interest on credit card debt can be costly – it should be avoided at all costs. If you own a home, you are in a great spot to lower your interest rate and eliminate credit card debt.

Renewing your mortgage is a great opportunity to save money. At the end of your current mortgage term (whether it’s 6 months, 5 years, or anything in between), the bank will send you an offer that includes a new interest rate to renew your mortgage. This is simply an offer and you have no obligation to renew with your current bank.

In fact, the offer a bank sends you for renewal is rarely the best deal you can get. Why? Because 70% of home owners simply accept this first offer, so banks have no incentive to truly give you the best deal.

When selecting a mortgage, it's important to understand two key attributes – the type and rate. Choosing the best type and rate for your situation can end up saving you a lot of money.

Let’s start with understanding the three common mortgage types – these include closed, open and convertible mortgages.

1. Closed Mortgage
   

When you're buying a home, you'll deal with many different professionals. To make sure your new home purchase goes smoothly, take a minute to understand who will be involved in the process.

Appraiser

It's a good idea to understand how much a home is worth before submitting your offer. Home appraisers are a neutral third party who will provide you with an estimate of the value of a home. Not only will they look at the value of the home, they'll also take a look at recent, similar sales as well as an assessment of local market conditions that may impact value.

A residential property designed for occupancy by one family and situated on land zoned specifically for that purpose.

A lien imposed by a taxing authority on real estate for failure to pay taxes within the time required by law.

The length of the current mortgage agreement. A mortgage may be amortized over a long period (such as 40 years) with a shorter term (six months to five years or more). After the term expires, the balance of the principal then owing on the mortgage can be repaid or a new mortgage agreement can be entered into at the then current interest rates.