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

Mortgage originators – 0861 1111 93

Qualification Matrix

Transfer and Bond Cost

With a myriad of mortgage products on the market, it is not always easy to know where to go to obtain the exact bond finance you need at the time and in the circumstances.

That is where the mortgage originator comes into the picture. “However, many people are unsure of exactly what services a mortgage originator should offer and what benefits they provide”.

The key function of a mortgage originator is to introduce a borrower to a lender and to act as a personal consultant in an attempt to help you obtain mortgage finance for a property. “The mortgage originator will apply to and negotiate with a financial institution in respect of the home loan on your behalf.”

A mortgage originator should have specialized knowledge of the various products and rates available on the market in order to give independent advice with the aim of obtaining the most suitable bond from the most appropriate mortgage lending financial institution for your particular needs. They should help you assess your affordability and explain fully and in plain language the material terms which you need to be aware of to make an informed decision.

“While you are not obliged to use their services, it can make the process much quicker because of their familiarity with the process, products, assessment yardsticks and requirements of the individual financial institutions,”

“With a mortgage originator you only have to fill out one application and they request only one set of the relevant prescribed supporting documentation, such as identity documents and salary advice slips, required by the financial institutions. They then submit the application to the various financial institutions on your behalf and try to negotiate a lower rate for you.

It is generally understood that a bond originator is able to secure a cheaper rate than if you approached the bank directly as they are on a better negotiating platform. A good mortgage originator should also follow up with the financial institutions on a regular basis and keep you informed.

Once the mortgage originator receives the various quotations, they should sit down and help you to assess your options, advising you of the pros and cons of each with your particular needs in view. “Essentially, the final decision should be yours after weighing up all your options and taking into consideration the advice and recommendations of the Mortgage Originator. Apart from providing you with information on the various mortgage products they should also be able to assist you with convincing and related costs.

The mortgage originator is usually paid a fee or commission by the lending institution with whom the loan is taken up, so the service should be free.

Remember Originators do not have control over and cannot therefore accept responsibility for credit decisions or valuations made by the mortgage lending financial institutions and is a good idea to approach a mortgage originator before you go house hunting so that you know what loan amount you will be eligible for.

Should you have any problems complaints may be addressed to the Office of the Ombudsman for Mortgage Originators which has been set up to deal with complaints against mortgage originators.

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