If you are interested in paying off your mortgage at a faster rate, then understanding the way your payment is applicable to the principal and interest is necessary. When making a mortgage payment, the money is used for paying the interest on your mortgage loan and the remaining portion of the payment is used for reducing the principal that has been borrowed from the lender.

Hence, the key to save money on your mortgage would be to pay off the principal as quickly as possible. This is feasible by shortening the term, thereby reducing the mortgage rate. Other prominent payoff options in this regard are cash-in-refinance, 15-year fixed, 15-year FHA including VA loan. For further details, contact our expert at your convenience.