When you purchase a home, there is always mortgage attached to it. It is the mortgage that actually pays off the house, and it is the mortgage that you are paying for in actuality and not the home you are living in.

Of course, if you are unable to pay off your mortgage, then you can be sure your house will be foreclosed by your mortgagor and be sold off to regain the money they spent in buying the house for you. Most mortgages run for a very long time and can be very critical to one’s financial well-being.

For one, mortgages take so long a time that the owners of home are also forced to limit their expenses as well as their leisure just to make sure that they meet their monthly payments. That can be good, but for a prolonged period of time, it does take a toll on every person. No one deserves to be denied of their hard-earned earnings that way, with some having only enough left to satisfy the cost of living. There should be a way for someone to finish his mortgage payments earlier.

Refinance Your Debt

Most mortgages run for terms as long as twenty to thirty years, with very high interest rates as well. Life can be hell for the mortgagee for that span of time, and twenty years is a very long time at the least.

Nowadays, however, newer mortgages can be had for lower interest rates as well as shorter time periods. You can do that through mortgage refinancing.

Mortgage refinancing is merely restructuring your debt in order to attain shorter time or lower interest rates. Lower interest rates are now possible because of tight economical conditions as a result of the mortgage crisis and also because creditors are so many that the competition has become tight. If you have signed up for a very long mortgage period and has spent some years paying off your house, you might as well start thinking about refinancing your mortgage.

What Happens When You Refinance?

Once you tap the services of a mortgage refinancing firm, your new mortgagor will then pay off your existing mortgage with a new note. This means that, in the eyes of your old lender, you have paid off your mortgage.

However, you now owe your new mortgagor money. The new mortgage will be according to terms of your own choosing, so if you have experienced an increase in income and are confident of higher terms, then you may want to start thinking about refinancing your current mortgage. If you are enjoying increased disposable money due to increases in income, why not use them to shorten your mortgage terms and be debt-free?

Another one of the effects that you will experience with mortgage refinancing is improved credit score over the next few years. In addition, you get to shorten the payment period and thus pay off your house quicker than you would have with your terms of your old loan.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

So you want to buy your first property but can’t figure out how to pull together the necessary cash and financing? The truth is, if you make some small adjustments to your lifestyle you’ll soon be sleeping soundly – under your very own roof. Here are some tips on how to do just that:

1.  Set a Goal

Ask yourself how much money you want saved up on a certain date and work towards that number. It is likely that there will be some months that you might not be able to save as much as you want, but it is good to have some kind of goal. Remember that the more money you save the more buying power you will have.

2.  Cut Costs

To reach your estimated goal you will need to cut down on luxuries. Establish what is essential and what are mere comforts. Try to dine out less and keep the bills down by being more aware of how you are using electricity, telephones, cell phones etc.

3.  Curb Spending
Before you even think of buying something, ask yourself if you really need it. It is hard to not be able to buy what you could afford a while ago, but keep thinking about the joy of purchasing your own home.

4.  Keep Track of Your Expenses
Keep all pay slips so that you can track where you money is going. This can then be used to determine were you are overspending and were you can cut costs.

5. Reduce Existing Debts
Look at your debt history and what you currently owe. While you are saving for your first home, do not make new debt. Rather try to reduce your exciting debt by making more frequent down payments.

6.  Get Legal and Financial Advice
A financial planner will be able to give you the best advice on how you can reach your goal faster. You can also call in the expertise of a real estate agent and property lawyer to help you make decisions regarding your purchase.

7.  Put Money in Interest Earning Savings Account
Always ensure that you have two accounts: One for all expenses and debit orders and another for all your savings. Make sure that the savings account offers high interest so your money can grow faster.

8.  Check the Market Conditions
You want to enter the market when house prices and interest rates are at their lowest. Speak to professionals about when they think the market is most beneficial for a first time buyer to start looking for property. It is great to find a bargain but always ensure that the interested rate won’t cripple you in the end.

9.   Remember the Hidden Costs
When buying property there is always hidden cost. Make sure that it is included in your budget, which should be revised several times to ensure that you are not buying what you can’t afford.

10.  Get Pre-Approved – www.mortgagepluscc.co.za
Try to get pre-approved for a home loan before you start house hunting. This will save you time as you will be looking at homes in your price-range, it will help you avoid disillusionment while it will increase your bargaining power and help you close the deal faster.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za