2014 New Year’s Resolution
We’re certain you have more than one, but if we may suggest a 2014 new year’s resolution for you to consider, one which will save you potentially thousands of dollars in years to come; and what is that 2014 new year’s resolution you ask? We’d like to call it the pay less to the bank and more to yourself resolution. What we mean by this 2014 new year’s resolution is that you should evaluate your current mortgage payment set up with your lender to see if there are any ways for you to save more money and pay less interest to them.
For example, lenders allow you to increase your regular mortgage payments by a certain percentage. You can call your customer service line, or walk into a branch and inquire about how much you are able to increase your monthly, or bi-weekly, or whichever payment frequency you have currently set up in your mortgage account. By increasing even a little bit of your mortgage payments will allow you to pay down your mortgage by that much more, and this can make some difference in the overall context of your mortgage contractual term.
You can also consider making lump sum payments towards paying down your mortgage outstanding balance. As part of your 2014 new year’s resolution try setting a goal that by the end of 2014 you would have saved enough money aside that you can make a lump sum payment on your mortgage outstanding balance. This too can help greatly reduce your mortgage balance if done regularly throughout the mortgage term.
If you’re one of the lucky ones in the New Year and have received a pay raise at work, you may even consider contacting your lender to see if they would allow you to lower your amortization. This will increase your mortgage payments, but it will reduce the overall life of the mortgage and therefore help you save money and pay less interest to the lender.
It can be very difficult and financially stressful to try to implement all of the above suggestions, especially right after the holidays, however you should take things one step at a time. If you feel it to be too much right now to make these 2014 new year’s resolutions, at least you’re now thinking about it and it is in the forefront of your thoughts and will allow you to plan for the near future with the hopes of trying out at least one or more of the mentioned ways to pay down your mortgage.
Remember, we’re here to help you along the way. Holding a mortgage debt is probably the largest debt that you will ever have and it shouldn’t be taken lightly. Contract us here at Trusterra Mortgage for an experienced, professional, and unbiased consultation.