mortgage

4 Tips to Make Mortgage Debt Reduction Easy

Your home mortgage is often the most significant debt most people have. To buy a home, taking out a mortgage is necessary, but have you thought about a mortgage debt reduction plan to pay it off quickly?

Mortgage debt reduction needs to be a long-term goal, but it doesn’t need to be difficult. In fact, there are several simple ways to reduce your mortgage quickly and cut down the loan term dramatically. You have the option of using one or a combination of any of the tips mentioned below as part of your mortgage debt reduction strategy.

Payment Frequency

When a bank calculates your mortgage repayments, they use a calculation known as ‘amortization.’ This allows them to work out how much you need to pay each month so that a portion of your payment goes towards paying down your balance and the other part of your debt is interest charged on your balance owing. They tell you how much you need to pay in monthly installments to pay off your loan over the exact loan term written on your mortgage contract.

However, if you’re paid bi-weekly or even weekly, you can adjust your repayments to the same frequency for which you get paid. This not only makes budgeting much more comfortable to pay a smaller portion each pay period, but it can also cut years off your loan term and save you thousands in interest.

Call your lender and ask them if you can adjust your payment frequency to bi-weekly but be sure you work out your own calculation amounts before you call.

Bi-Weekly Calculations

Find out exactly how much your minimum monthly payment will be and then divide it by two if you’re paid bi-weekly. If you’re paid weekly, then divide your monthly payment by four. Don’t use any fancy calculations or try to figure out how many weeks in a year and then divide by how many days. This won’t work. Simply divide your minimum monthly repayment by two for bi-weekly or divide by four if you’re paid weekly. Write this figure down. It’s your new minimum repayment. You’ll pay this new amount every time you’re paid.

More than Minimum

Once you have your new bi-weekly minimum repayment worked out, round this figure up to the nearest $5. For example, if your payment comes to $423.24, then round this up to $425. This small amount won’t break your budget, and you’ll find it easier to remember how much you need to pay.

Rounding up your repayments seems like such a small amount of money, yet it can save you tens of thousands of dollars in interest and reduce your loan term dramatically.

Lump Sum Reductions

Lenders calculate your interest repayments based on the balance you owe at the end of every day. Then they add up how much interest has accumulated and shown you a straightforward figure at the end of the month. By making more regular payments, such as weekly or bi-weekly payments, and then rounding up those amounts, you’re reducing the amount you owe on a more regular basis. This reduces the amount of interest the bank can charge you.

If you receive a pay raise or a tax refund or a bonus or if you earn some extra cash from a yard sale, pay it as a lump sum payment off your mortgage. This reduces your outstanding balance and lowers the amount of interest you’ll be charged. Mortgage debt reduction really is as simple as finding a plan and sticking to it.

We hope this information was beneficial. You can have anything you want if you are enthusiastic about putting in the time, effort and plans to get to your goals. Discover the secrets why the rich stay rich and the poor stay poor. Click Here to view a video with more life tips!

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Invest in Property to Secure Your Retirement

Have you considered property investment to secure your retirement’s financial future? There are many great ways that you can let real estate build a nice little nest egg for your retirement, and the sooner you begin the process, the better.

While there are all kinds of stocks and mutual funds that confuse even the most intelligent among us, real estate is a straightforward business. The problem is that many people feel it is too risky. The truth is that there are many different types of real estate investing that all carry different risk to the buyer. One thing is for sure, and that is that with proper care and attention properties tend to gain value over time rather than lose value. If you purchase properties today and adequately maintain them, you can not only reap years of rental income while paying the mortgage on these properties, but you can also find your retirement home and pay today’s prices for it rather than the rates of tomorrow.

When it comes to real estate, it is always good to arm yourself with knowledge before taking any steps, and you should carefully discuss all plans for your financial future with your trusted financial planner or advisor. His or her job is to guide you when making plans and purchases that will affect your financial stability and security. They can also help you with the matters of taxation, cost analysis, estimated inflation, and the average rise in property value for an area.

As mentioned, before there are always risks when it comes to any investing. The same holds for real estate investing. Things can go wrong. On occasion, you will find lemon properties; for this reason, you need to have a complete and thorough inspection performed before you purchase the property. You should also make sure that you are aware of your state and local laws as they apply to landlords. For this reason, it is a good idea to consult with an attorney that specializes in financial investment in addition to your financial advisor.

Rental properties aren’t the only way to build a property investment portfolio. There are all kinds of property investment opportunities for those that are willing to take the risk. When it comes to property investing, the more significant risks often net the greater potential rewards. The thing you must remember is that you are gambling with your financial future. I tend to stick with rental properties as they are a safe bet and pay for themselves over the years while building a nice nest egg for my future.

There is the eternally fascinating investment opportunity that property flipping presents for one. When flipping a property, you purchase a property below market value—preferably one that requires minor cosmetic repairs. Make the repairs. Then sell the house for a substantial profit. It is a risky venture for those who are novices to the field, and many would be investors have lost a great deal of money doing this. Successful investors, however, can net significant profits in a short amount of time if they have the knowledge and skills to do the work themselves and time things correctly.

There are even more property investment opportunities that provide even higher risk, as they are highly speculative known as pre-construction investing. It is the investment that creates millionaires. On the flip side, it has sent many into bankruptcy along the way as well so tread very carefully before engaging in this sort of real estate investing and take great care never to spend more than you can afford to lose.

As you can see, there are ample opportunities in real estate to create an outstanding financial retirement plan for you and your family. You only need to decide whether property investment is the right thing for you.

In closing, we invite you to share your comments on this and our other posts. If you find the information useful, please Like & Share us and subscribe to this channel for an update as we reveal new strategies. Remember to keep an open mind and Shift 4 Freedom.

Understanding Bad Credit And How To Improve It

It’s obvious that we now live in a credit world. There are lots of banking institutions offering different forms of credit from credit card to personal loans. The amount of people with credit cards is rising very fast. Apart from that, lots of people can hardly do without credit.

Because of lack of enough financial education and discipline on the part of most of these consumers they often find themselves in bad credit situations like court judgment, bankruptcy, and loan default which often make it difficult for them to get any credit at all in the future. You may now want to ask – what exactly is credit?

Credit means that you are getting a service or cash grant to use for your own purpose. You are often bound with a contract or agreement to repay in the future as agreed with a lender or service provider. Credit exists in different forms like a loan, mortgage, or credit card.

Before you can get credit from any financial institution or lending agency, they will first check your credit history. If you have defaulted on a loan before or have a bad credit history, you will find it almost difficult to get credit any time you apply for it.

However, it’s possible for you to improve your credit history or build a new good credit history by repairing your credit, thus re-establishing your credit-worthiness. This process is called credit repair. It’s the process in which consumers with unfavorable credit histories attempt to re-establish their credit-worthiness.

Though there are lots of credit repair companies nowadays that promises to repair your credit for you if you can follow the simple guide, it’s very possible for you to do it yourself – after all, it’s your credit.

If you repair your credit it will make it easy for you to get low-interest credit, car or home loans. However, with poor credit rating, you may not be able to get loans or be subjected to high-interest rates and several other unnecessary conditions. So, it’s very important that you repair your credit if you have bad credit. You will get lots of tips on how to do this easily on this website “Check Here”.

You can have anything you want if you are willing to put in the time, effort and plans to get to your goals. Discover the secrets why the rich stay rich and the poor stay poor. Click Here to view a video with more life tips! In closing, We invite you to share your comments on this subject and the other posts. If you find the information useful, Like & Share us on Facebook, Google Plus and other social media platforms. Remember to keep an open mind and Shift 4 Freedom.