One of your largest monthly outgoings will be your mortgage. If you feel as though each month most of your salary goes towards your home then, there is something wrong. You need money to live on during the month. Whilst your home payments are important, they should not cripple your financial situation. You may believe that there is one fixed mortgage for you. After all that is what you signed up for in the first place – how could you change it? There are some secret ways you can make your monthly payments less of a burden. Here are some secret hacks to reduce your mortgage payments and make the cost more affordable. Shh… these hacks are our little secret.
Take Advantage Of New Schemes
When the financial crisis hit the western world, the way people deal with their finances changed forever. There are now many schemes that seek to help people struggling with financial issues. One such scheme is the HARP program, which allows you to reduce your mortgage every month. HARP stands for Home Affordable Refinance Program and does exactly what it says. The program makes paying for your home more affordable. If your home’s value decreased after the housing market crashed a few years back, you can save money on your mortgage. Likewise, you can also get a fixed rate mortgage using the unique system. Schemes like that mean that you can reduce the cost of living for you and your family.
Pay Off Lump Sums
If you come into a large sum of money then, there will be a temptation to spend it all on something extravagant. It may sound boring, but you can use that money to pay off some of your mortgage cost and reduce your monthly costs. Something extravagant like a wild vacation might be great whilst it lasts, but you will have to come back to the same money issues. Paying off your mortgage will have a lasting impact on your daily life, so it is worth doing.
Talk To An Expert Accountant
If you are struggling to keep up with your mortgage payments then, you need to talk to an expert. An accountant can go through your monthly income and outgoings and see where you can save money and make life easier. Talking to an accountant will mean that you can save yourself a lot of money. In general terms, people overspend by up to 20% on the upkeep on their home. An accountant can help you see where you are spending too much money.
Cut Out Extra Fees
What fees are you paying on your mortgage? Do you even know what all the fees and charges on your statement are? Often we pay things out of simplicity and because we are too lazy to query payments. Take a good look at your mortgage terms and see if there are any payments that you could cut back on in the long-term. You could find that you are paying a third party to do something that you could do yourself.
Reduce Your Interest Rates
Interest on mortgages can be a killer. Much of your monthly mortgage payment will be interest on the total cost of your home. That means that you are paying money for the pleasure of buying a home. Moving your mortgage to another loan provider could help you to save money. You should discuss this option with your bank before doing so as they might be able to give you some helpful advice. Different loan companies offer different interest rates. By switching to a new company, you could cut down the interest on your mortgage. Doing so will make your payments cheaper than they are now.