Thursday, July 10, 2014

Tips for paying off your home loan

A home loan takes years to pay off, and often makes up the biggest chunk of your expenses. Paying off that mortgage sounds unimaginable, but there are ways to go about it. Get some tips…

Do not add to your expenses, especially on things that gain interest such as more loans on your credit card. See where you can trim your every day expenses, be it by disconnecting the cable bill or staying in more often. This won't make a huge dent, but it will help significantly.

Cut back on expenses

This will always come up. Do not add to your expenses, especially on things that gain interest such as more loans on your credit card. See where you can trim your every day expenses, be it by disconnecting the cable bill or staying in more often. This won't make a huge dent, but it will help significantly.

Get gigs

Don't rely on your day job. Create opportunities to earn an extra income like looking for a temporary job you can easily do after your nine-to-five. Find a skill that you can use, and use that to make yourself some extra cash. Put the extra cash, as in all of it, into paying off your debt.

Make biweekly payments

This way, you end up making two extra payments or a month's extra payment at the end of the year. The extra payment can also be applied directly to your principal and reduce the term of your mortgage.

Refinance into shorter-term mortgage

If at some point in the course of your mortgage you can lower your interest rate and shorten your mortgage, do so. If you can absorb the additional payment, you will also end up paying off your mortgage twice as fast and save yourself months off worry.

Increase monthly payments

Instead of refinancing, just write a bigger check for the monthly payments on your own. This flexible option will allow you to pay more when you can afford it. While you will be paying less than if you refinanced, you will not be enjoying the lower interest rate the way you would if you refinanced. 


Previous Next

Share
Email

Top Articles

Small spaces: Decor t...
Need a little more leg space in your living room? Use scaled-down sofas, arrang...
Home decor: Tips to c...
Even if you’re on a tight budget, it’s possible to completely transform a room ...
Buying Lots in Valenz...
Our partner is buying several properties in areas in Valenzuela, Quezon City, B...
Tips for designing th...
With imagination and clever design, you can encourage your family to spend more...
Buying Lots in QC, Va...
Our partner is buying several properties in Quezon City, as well as the cities ...
More property news...