Taking mortgage has several benefits as well as disadvantages. Early dreams of a home lead to better preparedness. Mortgage spans for a number of years ranging from five to over thirty years. In most cases, the interest paid on the mortgage is by far more than the amount paid for the home purchased price. Paying mortgage early will save a greater amount of money to be paid as interest for it. With very little resourcefulness, organization, discipline and right attitude you can pay off mortgage sooner in a shorter time than you could expect. It all boils down to hard work.
Eight steps for unstressful and early mortgage payments
Once you start working saving as much money as possible for your home. Do not neglect the job, no matter how small the salary at the end of the month may be. Whether you are employed as a skilled or unskilled worker; be it on a temporarily or permanent basis save some amount of money towards your home. This would enable you save much money and thereby reduce the amount of money that would be taken up as mortgage with a significant decrease in the interest rate as well.
When you finally decide on owning a home, you should consider trimming down your expenses. You may decide on a higher amount to be saved for the purchase of a home or to repay the mortgage. That will require you either take up a reduce amount as mortgage or repay the mortgage faster and save some money that would otherwise be spent on interest. Paying more on mortgage requires adjustments on other expenses. Early mortgage payments would relief you of any stress related to debt.
You can consider the option of living in a low cost home so you can have more funds available for other expenses. The determination to reduce bills for electricity, cut cable service, stop cooking fuel and water; buying clothes and shoes unless really necessary, considering making your own lunch packs and coffee are other possible options that could considerable reduce your expenses. Depending on where you find yourself, another possibility could be to use public transport. This option is very reliable in cities with a good public transportation network. The money that could be spent on fuel and car insurance could then be directed towards the repayment of your mortgage. In areas where the public transport is greatly reliable, then the idea of selling your car would be another good option. Once you complete the repayment of your mortgage, you can always buy a new and better car.
Consult a mortgage adviser to choose lenders with cheaper interest rates and flexible options. You
- Set a target deadline for repayment
Even before requesting for mortgage you should decide from your monthly budget how much to spend on housing..Then use the mortgage online calculator to figure out deadlines for its repayment. When you understand how to achieve this, the negotiation with the lender with be easier and directed towards your own interest.
Making more payments saves you much money. When taking mortgage, always choose those with very flexible options and without any penalties on early payments and fluctuations in the amount to be paid. However, you must keep in mind that the agreed monthly minimum amount must be respected. The number of payments per year may be limited so it is important to always check on limits. Choose fewer months to repay mortgage. Interest rates for the shorter periods of repayment of mortgage are generally lower than for longer periods. Albeit this will cost you more per month
Usually mortgage payments are agreed on per monthly basis. Instead of monthly payment, payment for mortgage can be made on a forth night basis. Payments made on a forth night basis plays a great role in reducing the amount that would otherwise be paid as interest drastically. With the idea of keeping away stress and to conclude early mortgage payments, you could divert different sources of income to mortgage. Ball other income sources that could arise from work, tax refunds and family inheritance could be diverted to the payment of your mortgage. You may however need to specify to your lender to consider these extra income as the principal of the mortgage.
Part time jobs or increase in number of working hours can also contribute substantially toward mortgage payments