It Is Never Too Late to Solve Your Money Problems

After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!

Top Secrets To Saving Big On Your Mortgage

Finance & Money Blog

If you are in the market for a home, you more than likely are going to need a mortgage.  A home is often one of the largest expenses someone will take on.  In taking on such a large debt, one of the most important things you should think about is how to reduce the amount of money you will end up paying on the mortgage.  These tips will help to ensure you don't end up paying too much over the life of your loan.

  • Shop around for your mortgage.  A mistake a lot of home buyers make is that they go with the first lender to offer them a mortgage.  That move may not always be in your best interest.  It is best to shop around for the best rate.  Even a difference of a half of a percentage point can make a big difference.  And according to The Motley Fool, shopping around for a mortgage will not affect your credit.
  • Opt for a fixed rate mortgage.  If you plan to stay in your home long-term, it is best to go with a fixed rate mortgage as opposed to an adjustable rate.  The difference between the two is that with a fixed rate, you receive the same interest rate throughout the life of the loan.  With an adjustable rate, you may start out with a lower rate, but that rate will more than likely increase after a few years, resulting in you paying more over the long run. 
  • Get a shorter term loan. Most people are comfortable with a 30-year term mortgage because the payments are usually lower than with other terms such as 20 or 15 years.  If you can afford it, the best move would be to take on a shorter term loan.  With a shorter term, you save because you pay off the loan quicker, resulting in less interest over the life of the loan.  In addition, according to Lending Tree, the interest rate is often lower with a shorter term mortgage.
  • Pay every two weeks instead of every month.  Few people know that mortgage payments don't necessarily need to be on a monthly schedule.  You can request to pay every two weeks. When you pay your mortgage every two weeks, you are actually paying 26 half payments per year instead of 12 full payments.  This results in you paying an extra mortgage payment every year, which can help to pay off your mortgage quicker.

Besides these tips, the best thing you can do when it comes to getting a mortgage is to make sure your credit is in tip-top shape and do your homework.  Good credit and being a well-informed consumer will help put you in the best position.


26 July 2018