How to Get the Most Out of Your Mortgage

Avery says: You are going to carry your mortgage loan for more than half of your adult life. That much is true. That’s also exactly the reason why you should find means and ways to make the most out of it.

You may have gotten the best deal when you first signed up for it, but you have to be on the lookout to keep it that way or improve it. Plus, you have to keep yourself on your toes so it does not go mismanaged that may lead to you getting in trouble and at risk for repossession.

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This information is pretty much useful to anyone– whether a homeowner, or even a resident living in the most exclusive condo in KL! It’s for everyone, actually– as we all have our stories– good or bad– when it comes to mortgage.

Here are some tips so you get the most out of your mortgage:

1. Pay as much as you can. Instead of getting a home theater system on your credit card (just because you can currently afford it), put your money instead on your mortgage. The more you pay, the more you save up and you know how valuable this can be for your mortgage loan. Prioritize your mortgage over anything unnecessary. When you pay in larger sums and more frequently, your mortgage lender will love you and reward you for it in the form of payment incentives and discounts. That, and the fact that you will get out of the debt faster than what is on your loan contract.

2. Keep your house well-maintained. The last thing you need when you’re paying for your mortgage is another loan in the form of home improvement loan. A house that is well kept will last a few more years without repairs and thus save you the hassle and the expense of having to renovate your house. Invest on home inspections every few years and consider this preventive maintenance.

3. Put all your debts together. Put all your mortgage, credit card and other loans together in the same place. It will make payment easier and more convenient with having a single due date each and in some cases, you can save up on the interest rates if they come from the same lender. It’s also much easier to budget for one amount every month.

4. Get yourself an offset account. I should’ve included this in my previous article that discussed the basics of property investment and management. An offset is simply a bank account that is connected with your mortgage. You pay off part of your mortgage with the interest you earn from your account. That’s hitting two birds with one stone: you get to pay off parts of your mortgage loans (seems small in the monthly rates but believe me, this will be a huge help when you look at the bigger picture) and as well get a bank account that you can get anytime.

5. Be updated of the newest offers on mortgage loans. If the offer is good or beneficial for you, then by all means don’t hesitate to get a refinance. This is also beneficial for anyone planning on selling their houses themselves. Don’t be unaware, too, of whatever gains you’ve earned over the years of paying such as your equity. Knowing these things and how to use them to your advantage will surely slash a huge amount off your debt.