What is one way to reduce the interest paid over the term of a mortgage?

Reducing the term length of a mortgage is an effective strategy for minimizing the interest paid over the life of the loan. When a borrower opts for a shorter term, such as 15 years instead of 30 years, they typically benefit from a lower interest rate offered by lenders. This is because shorter-term loans present less risk to lenders, which can translate into overall savings in interest costs.

Additionally, with a shorter loan duration, the borrower pays off the principal balance more quickly, resulting in less time for interest to accrue. This means that while the monthly payments may be higher, the total interest paid over the entire term is significantly lower compared to a longer-term mortgage. This emphasizes the financial advantage of choosing a shorter mortgage term when aiming to minimize interest expenses.