The federal tax refund was a big boon to a lot of families who used it to pay down debt, buy much needed but unaffordable items, or just sock it away for a rainy day. But for those still deciding what they want to do with it, think about paying some of your mortgage down, a process known as prepayment.

This is a pretty simple procedure that can save you thousands of dollars over the term of the mortgage.

If you want to use the rebate to invest in your future, you could not find a better method, in place of investing in stocks and bonds. Recent events may have made you fearful about putting these funds in such investments, while an additional investment in your house, one of the largest and most secure investments you can have, may be the perfect solution to provide for the future.

Prepaying some of your mortgage may help you to meet retirement goals ahead of time, since you can shorten the maturity date of your mortgage by cutting away at the interest payments, which form a great part of your home loan repayment.

Even those who spent their rebate should try other methods to lower the interest and therefore the balance of their mortgage. This can be achieved without impacting your everyday expenses to a great extent.

You can add a small amount every month to your usual mortgage payment, which will be allocated to the interest of your mortgage, reducing the outstanding balance more quickly. Since the largest part of a mortgage is interest, you will be paying this interest off more quickly. You will simply be paying your loan down at an earlier date.

There is another good way to pay your mortgage faster is to pay it more often. Just mail one half of your home loan payment in earlier than due, and the second half on the usual due date. The payments are the same each month, but the earlier payment will lower your loan faster over the years.

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