It's no wonder that the majority of homeowners dream of one day
being able to pay off their home loan and live a life free from
the shackles of interest rates, home finance and worries about
meeting the monthly mortgage payments because the largest
expense the majority of us take on in a lifetime is our mortgage
and each month our home finance payments take a substantial
chunk out of our take home pay.
Just think what you could do with all the extra money you would
have spare if you didn't have to meet your mortgage each month!
Interested? Well, here are five steps that you could take today
to substantially slash your mortgage repayments and the overall
cost of your home loan and even speed up your rate of repayment
so that the day when you've paid off your home finance and are
free to live the life you want comes that much sooner.
Step One - Demand Better Service!
As a loyal customer of your mortgage lender isn't it about time
you were rewarded for your financial commitment, for making your
regular payments and for being a good, long term customer?
Well, you can rest assured your mortgage lender will not reward
you unless you ask for a better deal on your mortgage!
So get on the phone, call up your lender, ask to speak to
someone in customer services or the customer retention
department and explain that you're looking around for a better
mortgage deal. Ask them for an evaluation of how much you have
left to pay so that you can give it to any one of the hundreds
of other mortgage lenders out there all willing to give you a
better deal.
If you are indeed a valued customer you should receive
favourable feedback to your demands and receive details of
better offers currently available to you from your current
lender.
Remember, if you don't ask you don't get and be adamant about
what you want!
Step Two - Shop Around.
If step one doesn't get you the deal you deserve, shop around.
There really are well in excess of a hundred lenders out there
all seeking new customers who will offer you incentives to take
up their mortgage product.
Use the internet to get an idea of rates being offered and
special deals available to you. Do remember that lenders will do
everything they can to make their deal seem like the most
attractive one available and do everything within their power to
attract new customers so you need to be shrewd.
Look for any hidden charges or tie in clauses and make sure you
evaluate products offered on a like for like basis taking into
account all the features of the mortgage offers available.
Step Three - Call in the Cavalry.
Well, not the cavalry exactly but expert assistance in the form
of a licensed and regulated fee free independent mortgage
broker. In the UK these guys are now regulated by the Financial
Services Authority and in the US they should come under the
scope of The Responsible Lending Act.
As independent brokers they have access to and understanding of
every single mortgage product available and they should be best
placed to assist you find a better deal than the one you have
now where your repayments will be less, your interest rate will
be lower and the amount you repay over the entire duration of
your loan is reduced.
Make sure your broker is fee free and remunerated by any company
you decide to take a mortgage out with. More importantly than
this, make sure they are regulated and licensed correctly and if
possible ask for professional references or testimonials.
Step Four - Cut Out All Extras
Mortgage lenders are notorious for selling overpriced add-ons
such as life insurance, home insurance, contents insurance,
income protection cover...all these insurances have their value
of course - but you can bet your bottom dollar that you can
every last one of them for a fraction of the price by going
directly to an independent insurance house or even seeking the
services of an independent financial adviser to find you the
best deal available.
You could literally save yourself thousands each year in
insurance premiums!
Step Five - Throw Some Money at It
So, you've cut your interest rate down to size, reduced your
monthly repayments, maybe received a cash lump sum from a new
lender and saved yourself thousands on insurance products - now
turn all those savings back into your mortgage and repay early.
Make sure you have it negotiated into your new mortgage contract
that you can make early repayment or lump sum annual top ups and
get rid of the millstone round your neck, free yourself from
your largest financial commitment as soon as possible and save
thousands in interest payments and enjoy freedom of life once
again!
About the author:
Rhiannon Williamson is a freelance writer whose articles about
property investing and emerging real estate markets have
appeared in publications around the world. She is currently
working on a brand new property investment resource http://www.amberlamb.com/
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