5 Steps to Getting on Top of your Mortgage

Getting on top of your mortgage so you can pay your loan off faster and potentially save thousands of dollars on your home loan is possible with a plan and consistent effort. There are mortgage reduction strategies that you can put into place that will ensure that your loan is paid off more quickly without putting a huge strain on your current budget. The following tips are designed to help you pay off your mortgage as quickly as possible.

1. One of the most important things you can do to accelerate paying off your mortgage is to make a more frequent repayments. If you can arrange to make weekly payments as opposed to monthly payments you'll actually end up making the equivalent of 13 monthly payments each year instead of 12 therefore saving you money by reducing the term your loan. In order for this to be effective it is important that you make sure that your home loan has interest that is calculated daily. You do not want a home loan that calculates interest on an average monthly balance.

2. The second thing you should do to speed up paying off your home loan is to make extra payments whenever possible with any extra money but you might come by. For example you might use your tax return, a bonus from work, or an inheritance to make an extra lump sum payment on a loan. This will go a long way toward reducing the principal of your loan. If your loan has a redraw facility you will have the flexibility of being able to access these extra payments if necessary.

3. Another thing you can do in order to reduce the principal of your loan is to have your regular income paid directly into your loan balance. You could then use a credit card to pay your daily expenses. At the end of each month you can then withdraw the money using the redraw facility and pay off the credit card. By keeping this money on your loan for as much time as possible you will be reducing both the term of the loan and interest that you're paying.

4. You can have an immediate impact on the principal of your mortgage on the day that you settle by simply making your first payment that same day.

5. Continue paying at least the original installment amount even if interest rates drop causing your repayment installments to drop also.

If you follow these strategies regularly over the term of your loan you will significantly reduce the mortgage as well as the interest you pay.

Copyright 2005 by Robert Scott, LoanSense.com.au

Check out Robert's LoanSense website that is dedicated to helping borrowers get the best possible deal on a Home Loan in Australia.

---

Ebooks, Scripts, Websites, and more...

Adsense websites

Types Of Home Equity Loans

There are two broad types of home equity loans:Term loans:... Read More

Adjustable vs Fixed Rate Mortgages

Mortgage rates can either be fixed for the duration of... Read More

What On Earth are Home Equity Loans?

Home equity loans are one of the most common types... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Home Loans For People With Bad Credit - When you Should Wait and When You Should Get a Home Loan

Home loans may seem like a bad idea for people... Read More

Stopping Foreclosures

If you as an investor understand the process, you will... Read More

Mortgage Soup

Looking for home mortgage loans can get confusing with the... Read More

Homebuyers Loan Guide

If you are a homebuyer, there are a few points... Read More

Choosing The Right Buy-To-Let Mortgage

Buy-to-let took off during the 1990s with the increasing availability... Read More

Know Your Mortgage Fees, and Youll Never Pay Too Much for Your Loan

If you buy new windows, you'll not only pay for... Read More

Remortgage ? When Monthly Mortgage Payments are Touching New Heights

Current economic scene has hinted towards a fall in the... Read More

What is a Homeowner Loan?

If you are a homeowner, it couldn't be easier to... Read More

When is the Right Time to Refinance Your Mortgage?

You've heard that interest rates are down and you think... Read More

Finding the Best Mortgage Lender Online

Finding the best mortgage lender online is simply a matter... Read More

Remortgage Debt Consolidation - The New Recourse For Credit Crunch

Shakespeare once said about human nature 'with nothing shall be... Read More

Home Equity Loan Improvements

There's more Regulation Z compliance on the way, courtesy of... Read More

Buying a Home when Rates go Up

Many people fret the rising tide of interest rates. You'll... Read More

Refinance Mortgage Rate and Mortgage Rates

Refinance mortgage rate is the best rate available to qualified... Read More

Home Loans: Where Do I Begin?

So you've finally decided you've had enough of paying rent... Read More

Guide to Remortgages

Here is a useful guide to remortgages. What is a... Read More

Getting The Best Rates On Mortgages And Loans

With an impending up-grade to the family due in a... Read More

How to Find the Best Mortgage

The purchase of a new home is one of the... Read More

Reverse Mortgage Maximization

Have your home's appreciation grow twice as fast.For Seniors over... Read More

Home Mortgage Loans For People With Bad Credit

Getting a home loan with bad credit has actually never... Read More

First Time Buyer Home Loans - Things To Consider When Applying Online

As a first time home buyer, there are several things... Read More