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4 Ways to Save on Your Mortgage Without Refinancing

Find-mortgage-savingsRefinancing is one way to save money on your mortgage, but it’s not the only way. There are some simple ways to lower the overall cost of your mortgage. Here’s how.

#1 Remove PMI

If you put less than 20% down on your current mortgage, you are paying private mortgage insurance (PMI) as part of your monthly bill and it can cost you a few hundred dollars each month.

Once you have 20% of your home’s original appraisal paid or you gain enough equity, you can ask your lender to remove PMI without refinancing. Once your mortgage balance falls to 78%, your mortgage lender is required to remove PMI but being proactive and paying down your principal faster – or even paying for a new appraisal – can save you a few extra months of PMI costs.

If you want to increase your savings even more, take your saved PMI costs and put that money into extra payments on the principal of your loan. You’ll save yourself thousands in interest over the length of the loan and won’t feel a difference in your monthly payment.

#2 Set Up Bi-Weekly Payments

If you have room in your budget and want to pay your loan off more quickly, you can also choose to set up bi-weekly mortgage payments. 

With bi-weekly payments, you’ll split the monthly cost of your mortgage into two, smaller payments. By paying twice each month you’ll automatically make an extra payment each year and shave almost two and a half years of payments off your mortgage.

#3 Extra Payments (Amortization)

With an amortizing loan, most of your payment goes toward interest in the early years of the loan. In the later years, more and more of the payments go to your balance (or principal). 

If you’re comfortable financially, you can help pay down your loan more quickly by putting extra payments toward your principal. Using amortization and prepayment calculators, you can find the “magic number” you want to pay each month to shorten the life of your loan to whatever length of time fits your long-term financial goals as well as your monthly budget.

You can even go so far as making large enough principal payments each month to reach a 15-year loan without refinancing. And if you’re ever tight on cash, place a hold on the extra payments until you’re comfortable adding them back to your routine.
Amortization Calculator  Prepayment Savings Calculator

#4 Find Monthly Savings to Put Toward Your Mortgage

If you don’t want to commit to an extra amount each month, you can choose to do so here and there and it’ll still add up. Next time you get birthday money, your tax refund, a holiday bonus or host a garage sale, put the extra funds toward your principal. Even though $50 may not seem like much it can add up when it comes to years of interest.

Look at your monthly budget and see where you can cut. If you normally pay for unnecessary items like new clothes, eating out and entertainment, plan to cut those down and use the extra savings for your mortgage. If you start to remove items from your budget, such as canceling your cable or finding savings with a new service provider, take those funds and put them toward your principal balance. You won’t feel a difference in your monthly budget and you’ll be savings thousands by the time your loan is paid off.

Another easy way to pay your home off early is looking at your variable costs each month, such as home utilities. If you typically budget for high seasonal bills, check the difference each month and put the extra savings into your home instead.

To make it part of your monthly routine, set a reminder at the end of each month and look at your budget to see how much you’re comfortable adding to your principal payment. And always make sure you note that your extra payments should go to your principal/balance and not your bill for the following month.

To evaluate your savings options and find what works best for you, try out Greater Nevada Mortgage’s mortgage calculators


All loans subject to credit approval by Greater Nevada Mortgage. Terms and conditions of programs, products and services are subject to change without notice. Certain restrictions may apply. This is not a commitment to lend. Licensed by the Nevada Division of Mortgage Lending and California Department of Business Oversight under California RMLA. Equal Housing Opportunity. *All loans subject to credit approval by Greater Nevada Mortgage. Terms and conditions of programs, products and services are subject to change without notice. Certain restrictions may apply. This is not a commitment to lend. Licensed by the Nevada Division of Mortgage Lending and California Department of Business Oversight under California RMLA. Equal Housing Opportunity