4 Tips to make Your Mortgage easy
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Published by TOP4 Team
Your mortgage is likely to be your largest expense ,remaining so for most of your life . Month after month , year after year, you pay towards owning your own home , so it makes sense to give your mortgage a bit of thought.
• Regularly check your rate of interest together with your loan options and conditions. Mark this in your diary and do it, as a little saving on interest can mean thousands saved over the life of your loan.
A saving of 1 per cent on a loan of $500,000 over 30 years is more than $300 per month. That’s a huge saving you can do it !
• Can you put an extra $10 or $20 each week into your loan? Is there something you can cut down on or an expense you can trim ? How about adding in any salary increases ? Any one of these measures can cut years off the life of your loan.
Forget trying to pull together larger lump sums ; a little and often is a better habit. It’s not only easier ,but more efficient and effective on your mortgage .
An extra $100 paid into your loan each month could have it paid off two and a half years earlier . That’s also a saving of almost $85,000 that you don’t have to earn . It’s like free money in the bank!
• Putting together both of the above gives an astonishing result. A rate reduction of 1 per cent and an extra $100 put into your loan each month means you have an unbelievable saving .
Almost eight years off your mortgage with monthly repayments of $3,260. This is a saving of just over $275,000 in total repayments ! It’s a huge accomplishment ,and it’s perfectly possible with a bit care , attention and expense watching. Manage your mortgage and you’ll feel like you’ve won lotto.
• Don’t borrow too much! It’s the most common piece of advice because it’s the most common important. You don’t want to have the excitement of home ownership turn into a nightmare when you discover the repayments to be out of your reach . If you do have a problem , act fast –it won’t go away by itself .
Talk to your lender and think about getting free legal advice . You’ll be glad you did.