4 Fantastic Strategies To Stay On Top Of Your Home Loan

Falling behind on your home loan could impact your credit score for years to come. Unfortunately, many new buyers are unsure of what they can do to keep up with their mortgage payments, protect their credit score, and still feel like they have extra money at the end of the month. Here are some tips you can use to manage your loan and potentially pay off your home much sooner than you expected.

Switch To Bi-Weekly Payments

Making bi-weekly payments is a simple way to stay on top of your loan without straining your finances too much. This trick could help you shave off multiple years from your loan by paying just a few extra dollars every two weeks. Many people also find that their budgeting is easier when they have smaller payments every other week. You will not have to worry about all of your biggest expenses landing on the same day each month.

Contact A Refinancing Company

If you have been able to make consistent payments for a few months, then you might want to speak with a reputable lending company about refinancing. Lending companies love to work with homeowners who have built equity and made consistent payments, and they could be able to lower your rates by quite a bit. As a general rule, homeowners should consider refinancing if it will lower their mortgage rates by over two percent.

Voluntary Lump Payments

A voluntary lump payment is when you put more money toward your mortgage than the minimum requirement, and it is a simple and effective way to drastically lower the total repayment time. Many homeowners make a number of voluntary lump payments throughout the year when they receive gifts or money from settlements. You can also use your tax returns to pay off your loans or carry out home renovation projects that increase the value of your property.

Review Your Loan Every Six Months

Many homeowners make the mistake of not reviewing their loans for years at a time, and that can cost them a considerable amount in the long run. Quite a few different things will have an impact on refinancing rates including raises, the birth of children, new debt, and the state of the market. That is why homeowners should take a fresh look at their loans every few months to see if there is any way they can lower their interest rates.

In addition to these few tips and tricks, you should also try to create a financial safety net for you and your family. When taking out and paying off loans, make sure to work with reputable people, like the professionals at Assurance Financial Group. Having an emergency account with enough money to cover your mortgage payments for at least three months will protect you in the event of a serious accident that turns your life upside down.