Title:
Five Tips to
Slash Your Home Finance Costs
Word Count:
820
Summary:
Cut your mortgage
down to size with these five instant money saving tips.
Keywords:
mortgage, home
loan, home finance, interest rate, mortgage lender, re-mortgage, finance, loan
Article Body:
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!