If you’re a homeowner, paying your mortgage probably takes a huge quota of your monthly expenses. Whether or not you struggle with paying your mortgage, it’s always important to make sure you’re in charge of your payments, lest you find yourself in an incorrigible financial jam.
For starters, bear in mind that you can easily lose your home if you don’t keep up with your prearranged mortgage plan. The point is to ensure that you never get penalized, come what may.
But sometimes, regardless of how hard we try, we can’t just avoid breaching a mortgage mid-term. The upshot in that is the repayment penalty mortgage companies are always quick to slap us on our face with.
As a good financial planner, it’s always nice to trim down the huge costs and, at the same time, look for possible means to shorten the life of your loan. The good news is that we have 6 unprecedented financial tips that you can follow to make this dream a reality:
1. Plan in advance
As far as mortgage repayments are concerned, it’s almost impossible to suss out anything good without planning. Everything, from the amount you spend on food, clothing and household expenses, to the amount dedicated to paying regular bills such as electricity, gas and water, has to be clearly laid on paper in advance. Most advisably, before you decide to take on the mortgage.
Start by making a list of everything you plan on spending money on. A budget calculator can be of great help at this point. A spending diary can also come in handy as it helps you to see where you money actually goes.
Remember to also include your occasional expenses, like the amount you spend on buying Christmas gifts, going out or on fixing your car. All this must be considered while planning.
Plan everything in advance; plan ahead for Christmas and other contingencies. Once done, look for possible ways to increase your income stream. If things become favorable, make the most out of the extra income flowing in. And if you happen to get star-crossed, go back to your budget and make necessary cutbacks to remain afloat with less money.
2. Be on the hunt for the best Mortgage Deal
Keep revisiting your deal every now and then to check if it’s the best there-is in the market. If you signed in for a special mortgage deal, go ahead and check if a better deal has been announced, months before it ends. Whichever way, be wary enough to make sure you don’t end up paying much more that you actually have to.
Don’t just go on looking for a mortgage with low interest rates. Remember to also factor in the cost involved in switching to a different mortgage deal. Sometimes a lender may charge you for making a switch to a different type of mortgage or terminating your mortgage at an earlier date than prearranged.
If you find yourself confused somewhere along the lines, don’t hesitate to seek advice from a well-experienced financial adviser on the best way to go.