The thought of mortgage and growing interest rates is an extremely intimidating topic for home buyers, especially those who are first time owners. However, with the right steps for smart financing and mortgage saving tips, you can stay on top of your mortgage payments and enjoy your home, stress-free. Nate Armstrong is a successful real estate investor, mentor, and Co-Founder of Home Invest, a company that helps professionals and retirees with their real estate investments. Today he shares with us 3 foolproof tips to develop a successful mortgage payment routine. These tips can and should be considered by everyone that is looking to take control as well as manage their finances more responsibly.
Having a low-interest rate is ideal. Though this is not always possible, taking your time to look around and evaluate your options is a great way to begin your speedy financing process. Nate Armstrong suggests dedicating time to carefully discuss your options with your partner. Both parties need to be ready and accepting of the mortgage payments as a union. Getting the best deal will help immaculately when the mortgage bills roll in. As interest rates rise throughout North America, most of your mortgage can go towards interest. It’s necessary to get a mortgage that allows you to make lump-sum payments and increase your contributions if you decide to pay your debt quicker.
Make lump sum payments
Unlike regular monthly payments, lump sum payments go towards reducing the overall principle. Nate Armstrong strongly suggests that you and your partner contribute to lump-sum payments as often as you can during your mortgage paying process. If you’re finding it tough already to make the payments, consider the extra money that comes around during the year. Money such as bonuses, tip outs, inheritance, gifts and tax returns. All should go towards your mortgage. In the long run, it can reduce your interest and gets you closer to the finish line.
Accelerate your payments
The simple yet smart way to reduce the life of your mortgage is to accelerate your payments. Nate Armstrong notes that bi-weekly payments reduce the overall payment process of your
mortgage by a long haul. It takes some folks, years, even decades; to pay off a mortgage. By contributing to it more often, the interest rate declines and the payment is closer to an end date. Depending on the amount of your mortgage, you could be saving thousands of dollars in the long run by accelerating your payments.
Paying off your mortgage is not an easy task. Especially when you have several other bills, and you’re working hard to get those paid off. With these simple tips, by Nate Armstrong, paying off your mortgage is much simpler and a little less worrisome. Remember, it’s possible for everyone to get a hold of the finances, make smarter choices and eliminate the growing interest on their mortgage every month.