One of the big expenses in life is your mortgage. You’ll always have to pay interest on what you owe, and it can be difficult to keep up with all the payments. But there are ways to make paying your mortgage more manageable! Here are 6 tips for saving on your mortgage so that you can enjoy life without worrying about this financial burden too much.
Save on interest
One of the biggest ways you can save money is to pay your mortgage off as early as possible. If you can, try and make at least double payments every month so that more of what you owe will be paid by the time it’s due. To help with this, consider creating a realistic savings goal that you try to hit every month.
Another way to save on interest is by paying weekly rather than monthly. If you have the money available, this will help reduce what you owe even more quickly.
Don’t forget about emergencies
One thing everyone needs to remember is that there will always be unexpected expenses no matter who they are—and this includes anyone taking out a mortgage. If anything happens, you’ll have to find a way to come up with the money! So it’s always best to have a bit of money saved away just in case. It doesn’t need to be a lot, but it can help you avoid putting your home at risk if something happens unexpectedly. This guide provides a good ballpark if you’re unsure how much you should aim to have in your emergency fund.
Another smart idea would be investing early on – make contributions every month instead of waiting until something does go wrong, because emergencies cost more when there isn’t enough money to fix them.
One of the best tips for saving on your mortgage is planning how you’ll pay it off in advance. This means getting a rough estimate and doing some research about what kind of house or lifestyle you can afford with that kind of payment each month, so that when the time comes you’re prepared! You can get an idea of how much you can afford to repay each month with a simple mortgage repayment calculator like this one here.
If there’s anything left over after paying bills and rent (if applicable), consider putting it into savings instead. That way if something unexpected were to happen again at least there would be an emergency fund available. When buying a home or refinancing always remember that this doesn’t have to be stressful – do your research well in advance before making any decisions, because once they’re made sometimes it’s too late to change them.
You could also consider refinancing with a lower interest rate – this might not sound like much but over 30 years, even small savings in interest rates can add up to hundreds or thousands saved! For example, if you refinance from an average five percent home loan rate down to four point nine percent for thirty years (30 year fixed loans), then depending on how big your balance is now and how high your current monthly payment is – just think about all those extra dollars in your pocket.
Save on fees
Another way to save is to make sure you’re not paying too much in fees with your mortgage provider! For example, some lenders charge higher interest rates when they know that borrowers are taking out their mortgages for the first time; others will also add a fee if it’s an investment property and won’t be owner occupied. Make sure you aren’t overpaying just because of these kinds of extra costs attached – this can really add up over the years so keep an eye out for any hidden charges or monthly payments that might sneak up on you! If you aren’t sure how to navigate all the different loan options available, it could be a good idea to speak with a mortgage specialist.
If you can, try and avoid paying a penalty for making a late payment. If your bank charges too much in this respect, it might be worth switching to an institution that will allow you to make at least one small mistake without charging such high fees – especially if the cost of moving institutions would pay off when lower interest rates are factored in!
Pay off credit card debt
If you’re carrying credit card debt as well as your mortgage then it’s important to pay off those debts first before applying for refinancing or switching lenders. Not only will this mean that you’ll end up saving more money over the long term, but if there is no chance of paying off these other debts in full (so maybe by selling some assets like property), then make sure to at least reduce interest rates so that they don’t continue to accumulate. You could also consider transferring balances from high interest cards onto lower rate ones which might save hundreds per year! Just be careful not to accidentally rack up even more fees when doing so.
These types of tips and tricks can really help you save on your mortgage in the long run. The best thing to do is plan early, research well and then just be prepared for anything that might come up in the future. This will give you the best chance of saving as much money as possible and keeping your finances in good shape! For more ideas, have a look at our guide to the best ways to save on your house.