Pay Your Mortgage down Fast with These Simple Tips
Having a mortgage is not as big a jump as you think. If you are paying rent you are helping somebody else pay a mortgage off so if you are in a position where you can get together a decent deposit and have a good financial rating then why not consider buying your own home?
Bunbury Real Estate have put together some simple tips to help you get the ball rolling on getting that mortgage down. It has been done. Some dedicated souls have been able to pay their mortgages off in less than five years! This would mean that you don’t have to pay a mortgage or rent ever again!
Select the Right Lender
There is a plethora of lenders in the market today. When selecting the right one you must consider what they are offering. Some would think that choosing a lender with an introductory low interest rate for the first six or twelve months is attractive. Make sure you read the fine print to make sure you can afford their rates once this period is over. Don’t be afraid of the little guy lender. Sometimes their deals are better than the big banks.
Split It
Interest rates can be discussed until you are blue in the face in regard to if they are going to go up or down. Sometimes the best thing you can do to protect yourself is to split the mortgage and have a percentage of it fixed and the balance variable. This is so that you can relax knowing that should the rates increase your loan will only increase by the amount of the variable percentage and not the entire sum.
Pay Fortnightly
This little secret has actually been out there for a while now but it is a fact and not a myth. Paying off your loan in fortnightly installments can greatly reduce the amount of interest paid over the life term of the mortgage.
Save Your Loose Change
This is a quick easy way to get some cash together. Simply add your gold coins to a tub, money box or dish somewhere and keep adding to it. Some people have been able to save $4,000 or more in a twelve month period. That is a nice little saver off your mortgage.
Lump Sum Payments
This is another great way to reduce the level of debt. Any lump sum payments you receive, such a tax returns or child care rebates, can be put straight into the mortgage.