Guest Post by William from homeloanfinder.com.au.

 

Halve Your Mortgage Repayments in the New Year

Throughout life, a mortgage is one of the biggest debts anyone incurs. Imagine if you could learn how to halve those house payments this year. All you have to do is learn some savvy tricks and you can get ahead on your mortgage
We all need help when it comes to paying off our home loan. Even though it is the largest purchase most people will make in their life, that does not mean it should take a lifetime to pay off. The sooner you pay it off the less you wind up spending on interest and fees. That means more money in your pocket to put toward your retirement, college tuition, or a dream holiday. Once you own a home the world can really be your oyster.

Making Smart Mortgage Payments

Before You Sign – After finding the perfect house, the excitement might cause you to sign on the bottom line without looking at other available loan options. While finding the lowest rate is important it is equally important to make sure extra fees do not end up being excessive. High fees can easily cancel out reduced interest charges.
Loan Portability – Most home loans are for thirty years. That is a long time in which a lot of things in your life could change. If your job, family situation, or quality of life changes you could need to find a new home that reflects your current lifestyle. Make sure the loan you get is portable which would allow you to sell one house and purchase another without having to reset on the original loan. This will save you all those extra establishment and exit fees.
Loans Can Be Flexible – Loan flexibility is another feature that will be essential to the success of paying off your house. Choose a loan product that allows you to pay over the monthly amount without facing any penalty fees. Be sure the loan you choose is not peppered with features you will never use, but will cost more money. As your life changes, your home loan repayments should also adjust accordingly.
Payment Frequency And Timeliness – Your first repayments toward your home loan will 100% apply to only the interest and will not reduce the principle amount of your loan. By increasing the frequency of your payments, especially in the beginning, you will be able to chip away at the principle amount. Remember interest is accrued on a daily basis, so putting your extra income towards your debt helps to cut back on the overall cost.
Get Loan Payment Savvy – Meet with a mortgage broker and learn more about offset accounts. These are special savings accounts that can offset the interest you are charged. For example, a $10,000 offset savings account along with a $100,000 home loan will allow you to only pay interest on only $90,000 of that loan. Adding to your savings account will not only help set up an emergency fund, but will simultaneously reduce the amount you pay on interest.
Budgets And Brokers – Being informed about home loans is useless if your financial house is not in order. Set yourself up for success in home ownership by having an airtight household budget. Make it a point to meet with your loan broker as often as is needed. If there are any adjustments in your life, they should be reflected on your loan. Your broker will be your biggest asset in correctly adjusting your loan.
We all want to pay off our mortgage as soon as possible so that we own our home outright and save money. It can add extra monthly income, give you equity, and a lot of peace of mind. Be proactive about getting that cleared out as soon as possible. Even if you have to do some work and make sacrifices right now the payoff of full home ownership is worth it.
This article was written by William from homeloanfinder.com.au. Visit HomeLoanFinder for a range of comprehensive guides and reviews to help you find the right home loan today.

 

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