5 Steps to Getting on Top of your Mortgage

Getting on top of your mortgage so you can pay your loan off faster and potentially save thousands of dollars on your home loan is possible with a plan and consistent effort. There are mortgage reduction strategies that you can put into place that will ensure that your loan is paid off more quickly without putting a huge strain on your current budget. The following tips are designed to help you pay off your mortgage as quickly as possible.

1. One of the most important things you can do to accelerate paying off your mortgage is to make a more frequent repayments. If you can arrange to make weekly payments as opposed to monthly payments you'll actually end up making the equivalent of 13 monthly payments each year instead of 12 therefore saving you money by reducing the term your loan. In order for this to be effective it is important that you make sure that your home loan has interest that is calculated daily. You do not want a home loan that calculates interest on an average monthly balance.

2. The second thing you should do to speed up paying off your home loan is to make extra payments whenever possible with any extra money but you might come by. For example you might use your tax return, a bonus from work, or an inheritance to make an extra lump sum payment on a loan. This will go a long way toward reducing the principal of your loan. If your loan has a redraw facility you will have the flexibility of being able to access these extra payments if necessary.

3. Another thing you can do in order to reduce the principal of your loan is to have your regular income paid directly into your loan balance. You could then use a credit card to pay your daily expenses. At the end of each month you can then withdraw the money using the redraw facility and pay off the credit card. By keeping this money on your loan for as much time as possible you will be reducing both the term of the loan and interest that you're paying.

4. You can have an immediate impact on the principal of your mortgage on the day that you settle by simply making your first payment that same day.

5. Continue paying at least the original installment amount even if interest rates drop causing your repayment installments to drop also.

If you follow these strategies regularly over the term of your loan you will significantly reduce the mortgage as well as the interest you pay.

Copyright 2005 by Robert Scott, LoanSense.com.au

Check out Robert's LoanSense website that is dedicated to helping borrowers get the best possible deal on a Home Loan in Australia.

---

5 Ways to Use Your Home Equity Line of Credit

Your home is a source of pride and accomplishment. Did... Read More

Mortgage Terminology for the First Time Home Buyer

Buying a Home for the first time can be a... Read More

Sub-Prime Mortgage Company - 4 Signs of a Predatory Sub-Prime Lender

If you have bad credit and are looking to get... Read More

Finding the Best Homeowner Loans for Your Money

Looking for the best homeowner loans can be stressful, especially... Read More

Mortgage Pre Approval - Getting Pre Approved For a Home Loan Online

A pre-approved mortgage is a must in a competitive housing... Read More

Flexible Mortgages - Offering Relief from the Fixed Mortgage

A pension mortgage may seem lucrative at the first sight.... Read More

Home Mortgage Quotes Online - How Do They Compare To a Quote From a Broker in The Real World?

Online home mortgage quotes are very similar to the quotes... Read More

Save Time With a Bridge Loan

Why You Need a Bridge LoanYou have to move fast... Read More

Home Equity Loans ? There?s Gold In That There House

To paraphrase an old familiar quote that goes "there's gold... Read More

Fixed Versus Adjustable Rate Mortgages

Which One Should You Choose?Choosing between a fixed rate loan... Read More

What is a Reverse Mortgage?

Simply stated, a reverse mortgage is a loan that enables... Read More

A Guide to Selecting a Mortgage Broker in Australia

Once you have made the decision to buy a home... Read More

FHA Home Mortgage Purchase or Refinance Loan - Why You Might Consider Getting an FHA Loan

Most borrowers have heard of FHA home loans. They are... Read More

How to Find a Direct Homeowner Loan

If you've been thinking about applying for a direct homeowner... Read More

Mortgage Sales Hit Problems

The housing market has been buoyant over the past few... Read More

Mortgage Loans For People With Adverse Credit - How Much Should You Borrow

"How much should you borrow?" is a question people with... Read More

How a Commercial Mortgage Can Help Your Business

A commercial mortgage or commercial remortgage is a business loan... Read More

Bad Credit Mortgage Lenders - Things You Should Know About Subprime Lenders

Interest rates and fees vary between subprime lenders just like... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is... Read More

The Top 5 Things You Must Know Before Applying for a Mortgage

You've been thinking about buying your own home for quite... Read More

What is an Interest Only Mortgage?

An Interest Only Mortgage is one where the repayments are... Read More

Refinancing Your Home Mortgage Loan With Bad Credit

There are numerous reasons a person has bad credit. Late... Read More

What is a Flexible Mortgage?

'Flexible mortgage' is a term that's used a lot, but... Read More

Self Employed Mortgage Loans - A Survival Guide

When you're self employed you have numerous advantages. As you... Read More

Tips for First Time Home Buyers

When looking at tips for first time home buyers, you've... Read More

Adjustable Rate Basics

An adjustable rate loan, most simply stated, means that your... Read More

Why Choose a Home Improvement Loan?

Many people choose to take out home improvement loans so... Read More

Bad Credit Mortgage Refinance - Should I, Shouldnt I?

It is a common financial scenario across households in the... Read More

A Guide to the Best Remortgage Deals

Finding the best remortgage deals isn't always easy, especially with... Read More

Five Things Never To Tell Your Mortgage Lender When Facing Foreclosure

1. Never discuss your household finances over the phone with... Read More

Refinance Online

If you want a low interest, low payment mortgage refinance,... Read More

Homes, To B(uy) or Not to B(uy)

Whether you are just moving out on your own for... Read More

Benefits of a Remortgage

There are many benefits in choosing a remortgage, some of... Read More