There is a easy trick that you can use to save thousands of dollars on your mortgage, without making any change in your monthly payment. Not many homeowners realize how effortless this can be.

We get paid each two weeks, usually. As we all know, things are much easier at the beginning of these two weeks than at the end. And yet, we still spend the same amount each week.

But we outlay the bulk of our money early in the period and then struggle at the end. The solution to this problem is to budget your funds in general, but budgeting your home loan payment, the biggest single expense for most people is sure to help the problem.

Budgeting this large component of your costs in this way will not affect your monthly expenses, but save you a lot over the long run. A simple instance of an $80,000 thirty year home loan, with a 7% interest rate would yield approximately $25,000 in savings over the life of the loan.

Merely pay one half of your mortgage at the outset of the month, and one half at the end, instead of all at the end. (Most people pay their home loan at the end of the month, so it gets to the bank on the due date.).

The reason for this is fairly simple: by paying incremental portions of your mortgage early, you are reducing the total term of the mortgage. This will cause your interest payments to be less during the whole term of the mortgage.

Because of the way mortgage interest is calculated and paid down, most of your initial mortgage payments are allocated to pay interest, and only a small part goes to principal. Because of this, you continue to pay interest on the bulk of the principal. But if you up the frequency of your payments, the interest is paid down faster, and then your payment starts to lower your principal. The net result is that the principal is paid down earlier!

You may be able to obtain forms to make this extra payment, but if not, simply send the additional payment in with your account number on it. You might even think about making additional copies of your mortgage payment coupons and just adjusting the date on them.

This magic formula will bring your total mortgage payments down, and you will not be paying a cent more out of your pocket!

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