Accommodation, being a basic necessity of man, is one of the biggest financial commitments you will ever have as it is a huge step to financial liberation. It is a considerate investment that is worth the risk as it can get you financial security. And if you don’t know how to save money, it would
Accommodation, being a basic necessity of man, is one of the biggest financial commitments you will ever have as it is a huge step to financial liberation. It is a considerate investment that is worth the risk as it can get you financial security. And if you don’t know how to save money, it would help you keep money for other luxuries in the long run.
A mortgage is a special form of secured loan where the loan’s purpose must be specified to the lender to purchase assets that have to be fixed (not movable) property like a house in Washington or farmland.
The assets are registered as the borrower’s legal property, but the lender can claim and dispose them if they are not okay with the way the loan is repaid. Once the loan is fully paid, the lender loses this right of seizure, and the assets are deemed to be free from claims.
As it stands, getting a mortgage for your desired house is a step to eventually owning your home in Washington. However simple it might seem, it has been reputed to be one of the most expensive monthly payments.
As real estate wholesalers and professionals, our desire is for you to own your desired house and call it home. In lieu of this, we’ll be sharing ways to save money while paying for your mortgage. These are strategic methods that have been tested and trusted.
1. Pay bi-weekly
This might sound totally off the chart; however, it has proven to be a budget-friendly way to pay off your mortgage. By paying for your mortgage twice every month, you are closing down your loan with your lender faster. This way, you would have paid for 13 months in a year instead of 12 months.
Before you try this, make sure to check with your lender if this is feasible as some lenders charge fees for this service. If they do, it will negate the payment reason, so you would have to consider another method.
2. Pay extra on your monthly payment
If your lender does not allow you to pay bi-weekly for free, this is a way that is proven to work irrespective of the lender. When you pay an extra on your monthly payments, you unconsciously save time, interest costs and creating a quicker way to owning your house.
The extra does not have to be something much. Extra payments even as low as $100 add up over time to give the desired result.
3. Go for daily interests
This is one of the cost-effective ways to save money while paying off your mortgage. It takes advantage of the fact that mathematically, interests calculated daily are lesser than annual interests.
When calculating daily interests, Lenders add up every payment you make straight away; however, when calculating annual interests, they use the payment of the previous year to calculate the interest for the present year, hence creating a higher cost for you to pay.