5. A second mortgage and secured Loans
Before you rush into taking a second mortgage or securing a loan on top of your mortgage, it’s advisable to think about it analytically. For one, secured loans use everything you’ve built as collateral. You default, you lose your properties.
So don’t make any decision with regards to securing a second mortgage or loan without reviewing your budget first. This is particularly very important if you’ve been having trouble paying up your first loan. Get help from a financial advisor before you land yourself in an even bigger financial abyss.
6. Consider biweekly payments
You might not find this tip very practical. But from a logical point of view, monthly payment-schedules only yield 12 payments a year. But with biweekly plans, you’ll be making 26 partial payments (half of the 52 weeks in a year) in a year.
Now factor in the round-outs and the amount of interest you’ll be saving. Plus the reduced loan life. See, the biweekly plan comes with perks aplenty for those who can afford it.
Though you can still direct the extra pay to your principal, it’s easier to involve your bank in setting up this payment plan, so the amounts can be taken in as your regular payments. Many banks will set this plan up for you gratis. Though there would be minor charges placed on top, but there would certainly be nothing big to leave you tensed up.