Five Tips for Homeowners on Homeloan Management

If you’re one of many new homeowners or about to be a first-time homeowner, there are some positive steps that you can take in managing your homeloan. When you take out a mortgage on a piece of property, you’re making a huge and important commitment. Here are five tips that will help you properly maintain your homeloan and will even save you some cash.

• Pay On Time

Don’t fall behind on your homeloan payment. Pay it on time to avoid any additional fees and to keep your credit in good standing. If you tend to be forgetful, it’s a good idea to have your mortgage payment directly deducted from your bank account. That way you’ll never be late.

• Make Payments Every Two Weeks

Even if you do not have a bi-weekly mortgage, you may still make your loan payment every two weeks, paying half each time. This results in your making 13 payments in a calendar year and not 12. The extra payment goes towards the principal and allows you to pay off a 30-year mortgage in about 24 years, saving you thousands of Rands in interest.

• Savings Account

Although many people find it difficult to save money these days, it’s important to have at least three months of homeloan payments tucked away. This will ensure that you can continue to pay your mortgage even if you lose your job or are disabled for a period of time. Be sure to include all parts of your loan payment in your savings-principal, interest, taxes and insurance.

• Look for a Better Rate

Once you’ve been in you home for six months to a year, it’s not a bad idea to keep your eyes on interest rates. You may find a great deal on a homeloan that will allow you to refinance and save some cash. Before refinancing, homeowners need to calculate the costs inherent in the process and how long they will need to hold the mortgage before those costs are paid off. Once these calculations are made some homeowners find that it makes more sense to stay with their present homeloan even though it may carry a higher interest rate.

• Communicate with Your Lender

If you fall behind on your homeloan payments, then it is essential that you communicate with your lender, explaining your situation. With a rocky economy, many homeloan companies are willing to work with their customers. Your lending institution may even have a special program for hardship cases. The thing to remember is that your financial institution cannot read your mind, and if you don’t communicate with them, eventually they’re going to decide that you are not interested in remedying the situation.

• Homeloan Management is Essential

For most people, their homeloan is the largest single expenditure they will ever have. Real estate is a prized commodity and ensuring that you are doing all you can as a homeowner to meet your financial obligations while getting the most from your mortgage makes fiscal sense. Make smart choices when it comes to your homeloan. You won’t regret it.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Determine What You Can Afford With A Home Loan Calculator

It’s clear that every family should really have a home of their own. This is one of the most fundamental dreams of almost every couple when they start to build a family of their own, and that’s to buy their own house within a specific time frame. It is very important that these considerations are always kept in mind so that you are able to position yourself and your money to be geared towards this goal of buying a home.

The difficulty comes when you are thinking about a Home Loan and need to calculate how much you can actually manage to pay in line with the income that both you and your partner are making. The home loan calculator can be your best tool to organize your finances, and to find out exactly where you stand well before you jump into a loan with your bank or the lender as they work to give you the loan.

There will probably be plenty of appealing words and sales tactics these home loan consultants will use to convince you to take advantage of the loan services that they are extending to you. You should recognize that loan companies are earning revenue from the loans that they make, so you have to be aware that not all sales pitches that they deliver are to your benefit.

The initial factor that you need to find out for yourself is the amount of loan that you are able to afford to borrow. This home loan calculator tool offers you the very best estimation of the loan that you can take out determined by your income and expenditures. Your monthly cash flow will actually identify exactly how much remains for your mortgage payments. It is going to provide you an honest and accurate income expenditure worksheet which is almost like having your own private accountant right next to you advising you about your best financial moves.

It’s pretty common that interest rates won’t be stable for a prolonged time period, so it is advisable to have a buffer for this scenario which the home loan calculator can easily calculate for you. It is also possible that you can make advance payments for the loan that can allow you to build up equity in your property more quickly, and you will additionally be able to calculate the adjustments that will be made to your loan standing.

This adjustment will definitely have an effect on the length of your amortization period if the loan interest rate is fixed, however there are some institutions that are prepared to reflect the advances you make which reduces the overall amount of the loan and will lower the interest as well. It is most effective to be ready with this information in advance to make sure that you will know your negotiating strength.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za