Once you are done fretting over whether you will be able to secure a mortgage, you start worrying about its repayments. The worry doesn’t end of course, however there are easy ways to turning your worry into something constructive. With some simple tips on repayments and most defiantly sticking to them will help you worry less and see concrete results of you sticking to the plan.
Consistent repayments is an art very few have, but once mastered, the mortgage you have managed to get with months of hard work can be turned into an asset for you. Paying your mortgage bi-weekly will be able to save you money and time. If you calculate money to pay plus the interest you will learn that with bi-weekly payments you will be save up to three years of payments. Instead of spending money on luxury items that we tend to buy when you have the extra cash on us, you will be allocating to something that can be visible in terms of a reduced amount due.
Any money that you earn, such as a promotion or holiday money that you did not end up using or money as birthdays, anniversaries, tax returns can be used to be paying the mortgage – money well used. It is your money at the end of the day how you wish to spend it is entirely up to you. Round up the money. If say you have a mortgage of 98 and you round off to 100, that extra 2 dollars in being used to make the payments and you end up allocating more money in a shorter span of time.
Even after you renew your payments and the amount drops down to 60% of the payments earlier, keep paying the same amount. This way you are still paying a huge chunk minus the interest rate. You actually save a lot and dial down that worry.