Loan, Mortgage and Cash Advance >> Save Dollar on Mortgage

This page will provide you with some useful tips. But let us first focus on some of the facts.



Did you know that the interest on the average home mortgage will cost the homeowner nearly two times the cost of the home?

We will make that clear for you.
If you were to purchase a $100,000 home with a $80,000 mortgage (80%) and you paid an interest rate of 9% for 30 years, you would have paid over $151,666 just in interest (in addition to the original $80,000). That's nearly two times the cost of the home.
You may not have calculated this, but it is true!

You may have been approved for a mortgage on the basis of your past credit history and present income, but tomorrow is another day. You might lose your job or meet with an accident. Then how do you make the repayments? Interest continues to bug you. And the loan balance will amount to a huge sum. You may not even have enough equity in your home for a loan or afford a refinancing. You may not be able to lower your credit card interest rates.

The magic word towards saving is "extra payment". Extra payment is paying a bit more than the bare minimum; this will help you save money. An extra payment of $75 may save you $54,666 in interest payments. Not only that, you will also have your home paid off about nine years earlier. You knock nearly 10 years off your mortgage just by paying an extra $75 a month.

What you should remember while making extra payments:

• If you have decided to make an extra payment, check if there is a prepayment penalty on your mortgage. If you try to pay off your mortgage early they may actually charge you for doing so. That is prepayment penalty .Or they may only apply part of your payment to the principal and take the rest as a "service charge”. So, ask your lender regarding these penalties before putting your decision into action
  
• During additional payment make sure that you send a separate check for this, apart from your monthly mortgage payments. You should also send a note, that the amount is to be applied towards the principal of your loan. Otherwise they may just apply it towards next month's payment and still charge you the interest.
  Most of the credit card companies don't have this problem .Nevertheless make sure to have a look at it. Watch out for late payments and going over your credit limit. They may then use these "rule infractions" as cause to raise your rate to over 25%!
  The tricks and tips are only helpful, when you do your part. Devote your time for calculation, do your homework well and then go to the market and start the fight. All you need is loads of patience. Start making your budget and explore all the ways to get a debt free life. The above things can do wonders for you if you use them properly.

Sometimes, even after knowing all the facts we get trapped into liabilities. If you are under debt, our experts are always there to help you to consolidate them.
Debt consolidation is a much better way to get rid of your debts and we are experts in this field.

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