Save money on your mortgage - these three tips show you how

Your mortgage is probably the biggest loan or financial committment you will ever have.  Therefore it is not something to be taken lightly.  In today's blog post we share with you three tips to help you pay of your mortage quicker, and to avoid getting into financial trouble.

• Tip 1: Refinance your mortgage : If you can refinance to a lower interest rate you can save a lot of money. If you have a $200,000 mortgage and refinance to a loan with one percent less you will save yourself around $80 a month. Try to renegotiate the removal of any early repayment penalties, so you can pay it off even quicker.

• Tip 2: Keep up to date with your mortgage payments: Unless you want to pay extra fees keep up with your Mortgage payments. Once you get behind it also becomes increasingly difficult to get up to date. If you are starting to have trouble, you are better off to speak to your bank and see if you can get a payment holiday or extend your loan period. This is a far better option than defaulting on your mortgage repayment. Don’t think a loan shark is going to help you bridge the gap. You will only get deeper into debt. Banks can be surprisingly amenable to such requests. Plus you might also lose your knee caps!

• Tip 3: Pay your mortgage bi-weekly instead of monthly: If you make fortnightly payments instead of monthly you are making 26 payments a year instead of 12 payments. The extra two payments, save you 1000s in interest over the course of your loan.

So there you have it, three tips to help you pay off your mortgage quicker and avoid getting into financial trouble.

If you want to learn how to save $1000s a year then check out our Money Saving Tips E-book. 

Cheers

Rusty O'Connor