Mortgage Best Practices Checklist
Essential steps and strategies to save money on your home loan
Important Reminder
Making bi-weekly payments and directing extra money to principal are two of the most powerful ways to save tens of thousands of dollars on your mortgage. Always specify in writing that extra payments should go to principal.
Before Closing
Lock in Your Interest Rate
Get a rate lock in writing. Rates can change between application and closing.
Review Your Loan Estimate
Compare the Loan Estimate to your final Closing Disclosure. Look for any unexpected changes in fees or terms.
Get Everything in Writing
All verbal promises should be documented in your loan paperwork.
Shop Around for Title Insurance
You can choose your own title company. Compare prices to potentially save hundreds.
Avoid Major Financial Changes
Don't open new credit cards, take on new debt, or change jobs before closing.
After Closing
Set Up Bi-Weekly Payments⭐ High Impact
Make half your mortgage payment every two weeks (26 half-payments = 13 full payments per year). This saves thousands in interest and pays off your loan faster.
Specify Extra Payments Go to Principal⭐ High Impact
When making extra payments, always specify in writing that the extra amount should be applied to the principal, not future payments.
Review Your First Statement Carefully
Check that your interest rate, payment amount, and loan terms match your closing documents.
Set Up Auto-Pay
Never miss a payment. Mortgage late payments severely damage your credit score.
Keep Detailed Records
Save all mortgage documents, payment confirmations, and correspondence for at least 7 years.
Build an Emergency Fund
Aim for 6-12 months of mortgage payments in savings. Homeownership comes with unexpected expenses.
Review Your Escrow Account Annually
Verify property taxes and insurance premiums are correct. Request a refund if you're overpaying.
Money-Saving Strategies
Round Up Your Payments
If your payment is $1,847, pay $1,900 and specify the extra $53 goes to principal.
Apply Windfalls to Principal
Tax refunds, bonuses, or gifts? Put them toward your mortgage principal to save years of interest.
Recast Instead of Refinance
If you make a large principal payment, ask about recasting (re-amortizing) your loan. Lower monthly payments with minimal fees.
Cancel PMI When Eligible
Once you reach 20% equity, request PMI removal in writing. Lenders won't do it automatically.
The Bottom Line
A $300,000 mortgage with bi-weekly payments can save you over $50,000 in interest and shave 4-5 years off your loan.
Small changes in how you pay your mortgage create massive long-term savings.
Quick heads up: These calculators are designed to help you make smarter financial decisions, but they're meant for educational purposes only. Everyone's financial situation is unique, so consider this a helpful starting point rather than personalized financial advice. For decisions specific to your circumstances, it's always a good idea to consult with a qualified financial professional.