If you want to pay less interest on your home loan it’s not difficult. There are different methods that you can use to reduce your total interest and pay your mortgage payments at a faster rate.

Most mortgage payments consist of two parts: repayment of the amount you borrow, and the interest. Interest usually forms the larger part of mortgage payments, so the way interest is calculated can make a big difference on how much it will cost. Over the duration of a distinctive mortgage, the interest can be double the amount you borrow, it can be even more in times of high interest rates.  

There are five general choices for the   mortgage payments of the amount you borrowed:

1. Endowment: Endowments means donations that are often combined investment and life insurance policies. You are able pay a usual amount of money and your money is invested.  And at the end of the policy, the growth resulting from that investment is paid back to you.

As the final amount is unknown, the risk with Endowment Mortgages is more. The final sum which you get back is more or less than the money you actually owed. If the final sum is less, you have to find the left over money from other resources.

2. Repayment Mortgages: The money that you owe on Repayment Mortgages gets back in monthly installments to you. By the end of the mortgage, the entire amount is repaid to you.

3. Interest Only:  The money you have to repay on Interest Only Mortgages is not paid back and not included in your monthly installments.  The amount is same as debt outstanding for the entire duration of the mortgage. In such cases you have an optional plan for paying off what you owe called "bridging loans". This enables you to buy a second house even if you have not sold the one you own currently, so that you can repair the second house and then move in. In this case you only repay the money you had borrowed on the bridging loan, once you have sold off your first house, by using the money you get from that sale.

4. ISA: An ISA is a special savings which qualifies for tax relief. When you pay a regular amount of money into the ISA, the amount you save is invested, and the value of the ISA is utilized at the end of the mortgage to pay back the money you borrowed. The final amount of the ISA fund is unknown similar to Endowment Mortgages, so here also  there is a risk that you get back more or less than the money you originally borrowed and there is a possibility of shortfall in making up with the payment.

5. Pension: Pension mortgages are similar to ISA and Endowment Mortgages wherein you pay money into a fund, which is saved and invested, and at the end you get a total sum that is used to pay off the mortgage. In this case, you pay money into a fund and withdraw at the end to pay the mortgage payments. It is protected by different rules to ISAs and Endowments as it is a pension scheme.Therefore, by proper scheduling and planning you can pay your mortgage payments.