One of the most significant events in your life should be the purchase of a house. It can take decades to complete a commitment – from saving a deposit to monthly mortgage repayment.
Getting the keys to your own home is a step towards realizing the sweet dream. Until then, you will begin your years of mortgage payment for a Washington mortgage company. However, many people make simple mistakes when repaying. These mistakes, no matter how simple they may be, will cost you significantly more than the life of your loan.
Check out these tips on how you can save big on your mortgage:
1. Keep your savings in your mortgage
It is amazing how many families have one or more savings accounts when paying a mortgage. Why pay tax on the interest earned on these accounts (even if it is only a small amount) when you cover the high-interest cost of your mortgage?
Technology has allowed us to have more control and flexibility in our bank accounts than ever before. So, instead of putting your savings in a separate account, why not save extra funds in your mortgage account where you can reduce your interest repayments when you still have access to what you want.
2. Pay yourself first
As with many families, if you have difficulty fulfilling your financial obligations each month or if your expenses vary from month to month, I recommend that you pay 10% of your income yourself before paying anything else.
Paying at least 10% of your income yourself (in your savings or offset account) is the old but wise max. Then live the rest.
This creates mandatory savings and some interest cost savings and you will get this extra money if you allow it.
3. Review your expenses from time to time
Once you know where you are and how much you are spending, it is easy to compare your expenses.
Negotiate the best deal with your mobile phone, apps and other bill carriers.
When buying home goods and gifts, research different contract sites and online shopping sites, which will save you up to 70 percent or more on the price of similar or comparable items. When reviewing your expenses, eliminate unnecessary expenses.
4. Be sure to review your financial status regularly
Let me be clear: everyone who is financially successful has something in common. Quite simply they always know where the finances are.
Conversely, losers usually have no clue where they are financially at any given time. You should check your financial situation on a regular basis. There should be no financial surprise if you are fully aware of what income is coming in and what expenses are coming out.
5. Use budget
If you want to save money, you have to spend less than you earn, right? You can only be responsible for the result you want when you see your true cash position – so you have to set a budget and stick to it!
Most people, including high-income earners, do not understand that they cannot live beyond their means. Still, they expect things to be different even if it continues to cost more.
For example, as a way to save money that can be used most effectively on your best mortgage rate, you can take your shopping list with pre-planned meals and items while doing your regular grocery run.
6. Keep your income in your offset account
When your income rests on an offset account, you save interest every day because the interest is charged monthly, but calculated daily.
Even if you spend most of your income by the end of the month (you shouldn’t be on a budget!) You can pay off your mortgage quickly by depositing your income directly into an offset account, thus reducing your interest payments.
