Mortgage calculators and the road to financial freedom
Achieving freedom from financial debt and pursuing your goals when buying your own home is not as easy as you think. It is logical to say that you pay the monthly rent, when you can really buy and pay for your house.
Here are some simple steps to financial freedom:
Refinancing your mortgage. This should be a standard operating procedure to perform a mortgage health check every five years. There is a fairly good chance that a more complete and less expensive mortgage offer will be available in the market. By using rent vs buy calculator, you can get an estimate of how much you can save by rent or buyinga home.
Get help and advice from non-banking institutions
The popular nonbanking lenders are known for their desire to increase market share and reduce overhead. These are some of the reasons why they can offer customers, like you, interest rates that are significantly lower than the variable interest rates offered by standard banks.
Say no honeymoon loan
The loans for the honeymoon are one of the most popular types of loans because they have low introductory rates. But as soon as the honeymoon rate expires, your interest rates may increase more than the standard variable rates.
Consolidate your debts
Paying your other debts, such as car loans, credit card debts, personal loans and store loans, can stifle the family budget, especially if you have mortgage obligations. One way to reduce your expenses would be to combine all your other debts into a mortgage and see how you can reduce your monthly payments twice. Your mortgage interest rate will be applied to your other unsecured debts. You can use a debt consolidation mortgage calculator to find out how you can reduce your expenses after all your debts have been consolidated.
Instead of regular monthly payments, make two-week payments. Instead of the usual payment method, you can make payments of two weeks. In one year, you can make 26 payments instead of the usual 24. With the additional payments, you can shorten the term of the loan and save on interest expenses.
Try to check your mortgage
If you find it difficult to manage your mortgage obligations, you should talk to your mortgage lender and ask if you can reconsider the terms of your mortgage. Ask them if they can lower the interest rate or extend the term of the mortgage to reduce their monthly payments. Remember that your lender would prefer to work with you and recover your money instead of allowing you to default.
Change to a fixed or variable interest rate. If a rate increase exhausts your budget, you can consider switching to a loan with a fixed interest rate and vice versa. Use fixed or variable rate mortgage calculators to compare rates and find out which of the two will offer you the best option.