There is nothing in this life that will be more expensive than buying your own home. Paying off a mortgage is one of those things that we all need to get through in order to ensure we have a roof over our heads for the rest of our lives, it’s one of the best safety nets we can have. We know that it’s tough but it is possible to make small changes to make it just that little bit easier. Have a read through our guide to saving money on your mortgage and see if you can find yourself a bit of extra cash each month.
Utilize your home’s equity wisely
With every mortgage payment that you make you are building up equity in your home. Once you are in a position where you have built up some equity you could consider using it to help you pay off your mortgage. You could, for instance, take out a home equity loan and use it to overpay your mortgage. You will still have repayments on the home equity loan but these might attract lower interest payments and will also be paid off over a shorter term.
Use Credit Card Offers
Often credit cards offer zero percent deals for new customers. If you have a healthy credit score why not consider making the most of these offers and taking out a credit card to pay some of the balance off of your mortgage? The overpayment should come straight off of the loan amount, reducing the interest that you will need to pay over the lifetime of your mortgage and it should help you pay off the mortgage quicker. The zero percent interest deal will only last for a limited period of time, so you will need to ensure that your credit card is paid off within the time period but its certainly a clever trick. Why not have a look at our post considering how you can save money each month and see if you can pay that credit card off even quicker?
Modify Your Loan
Always be on the lookout for better mortgage deals, they will help you save money each month or pay off your mortgage even quicker if you choose to overpay. A specialist mortgage website can help you find the best deals.
Make bi-weekly payments
The beauty of making bi-weekly payments is that, if you can get into the habit of doing it, it forces you to make an extra payment each year. The extra payment will usually be applied to the core loan amount, so will, over time reduce the interest that you pay and also ensure that you pay the mortgage off sooner. Make sure that you approach your mortgage provider and see if they will allow you to make bi-weekly payments, many will welcome it.
Reduce Property Taxes
It has been reported that many people are overpaying on the property taxes, with many neglecting to check up on them. Why not see if you have been overpaying? You could receive a healthy rebate that you could use to overpay that mortgage and really bring the balance down.
Buy Cheaper Insurance
Cheaper insurance could leave you with a healthy amount each month to pay down the balance on your mortgage. Always make sure that you shop around for the best deals. Never just accept your renewal quote.