While we're at it, here are a few more time saving shortcuts for positioning the cursor or editing the text around the current cursor position:

Ctrl + A Go to the beginning of the line you are currently typing on
Ctrl + E Go to the end of the line you are currently typing on
Ctrl + U Clears the line before cursor position (or the entire line if you are at the end of the line)
Ctrl + H Alternative to using backspace
Ctrl + W Delete the word before the cursor
Ctrl + K Clear the line after the cursor
Ctrl + T Swap the last two characters before the cursor
Esc + T Swap the last two words before the cursor
Alt + F Move cursor forward one word on the current line
Alt + B Move cursor backward one word on the current line

These commands should work using the default OS X Terminal (Bash), however if you're using a third party Terminal like iTerm then it will likely have its own set of shortcuts for performing the above actions.