There are a lot of people out there who think that mortgage isn't debt at all and that once a person has concluded a mortgage deal he instantly becomes the legal owner of the property. This couldn't be further from the truth. If you want to be truly free of your debt then you should educate yourself about how mortgage loans really work. In the following paragraphs I have listed some of the lesser known facts about mortgage loans along with some useful tips of how to pay off your debt quickly and effortlessly.

Here are some things that you need to know about mortgage loans:

- Most mortgage are compounded on a daily basis but loan companies never clearly provide this vital piece of information to their clients. Most of the times it is mentioned in fine print on the closing documents. Therefore it's not surprising that most mortgage borrowers out there are completely oblivious of this fact.

So what exactly does this mean? It means that the interest amount is added to the principal on a daily basis because of which the interest amount keeps increasing with the passage of time. Usually when people get a mortgage rate of 6% they think that every year they will have to pay 6% of the initial loan amount as interest but that's not true. In reality they have to pay 6% of the initial loan amount plus all the interest accumulated until that point.

- There are two schools of thought when it comes to mortgages. According to the first one, you should pay off your mortgage as soon as possible. After all the longer you wait, the higher your total interest amount is going to be. On the other hand, some people are of the view that a mortgage shouldn't be paid off early. There are two arguments that support this point of view. First of all, mortgages have some tax benefits (mortgage interest is deducted from the overall tax amount). Second of all, the mortgage rate in most cases is very low which means you can invest your income wisely and make a profit. However these advantages are nothing as compared to the huge amount of money you will end up paying as extra interest. In my opinion you should try and pay off your mortgage quickly and become the owner of your house.

It is very important for you to understand how mortgage loans work and follow the guidelines given in this article. Doing so will not only help you save your hard earned money but will also give you some much-needed peace of mind.