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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.

In the case of mortgages, real estate offered as collateral for the loan.

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.