5 New Year’s Resolutions to Assist You With Your Mortgage
With 2022 in the rearview mirror and a new year ahead, now is a good opportunity to consider your goals for 2023.
For some, it may involve initiating their fitness journey to feel their best. For others, the objective may be to develop better savings habits.
If you are a homeowner paying down a mortgage, one of your New Year’s intentions may be to find ways to reduce your mortgage payment. In such a case, we have the perfect list for you.
Here are some ways you may be able to save money on your mortgage in the upcoming year.
1. Ensure your Current Mortgage is still Competitive and Appropriate
The beginning of the New Year is the ideal time to assess your current mortgage to discover if it is a good deal and meets your current needs.
With interest rates having increased greatly since 2022, you may not be able to obtain a significantly cheaper rate, but it is still worthwhile to conduct research.
Compare your mortgage interest rate to the rate offered to new customers by your lender. It is also a good idea to compare prices with various lenders.
A Home Loan Specialist from HUMfinance can help you refinance or negotiate a better interest rate if you locate a better deal.
2. Examine your Home and Belongings Insurance Coverage
Every homeowner must have enough insurance coverage. Your home is most likely your most valuable possession, so you should ensure that you have adequate home and contents insurance.
Different insurance carriers offer varying degrees of protection, so it’s a good idea to evaluate the strength of your policy in the new year.
The majority of home and contents insurance policies cover your home and valuables in the case of loss or damage caused by theft, storms, or fire.
In addition to the house itself, home insurance typically covers other structures on your property, such as fencing, sheds, and your swimming pool.
3. Make Additional Mortgage Payments Whenever Possible
The faster your mortgage is paid off, the less interest you will pay. While it is possible to make only the minimum monthly payment, it is prudent to consider making additional payments if possible.
If you can afford to devote a little more money toward paying down your mortgage balance, it may be beneficial to do so. You will grow closer to buying your property outright and without a mortgage.
4. Ensure that you are not Paying too much for your Mortgage.
Your property loan will be costly, but that does not imply there are no methods to save money. Here are some techniques to determine if you are overpaying on your mortgage:
Consider refinancing at least once every two years with great care.
Keep an eye on the interest rates offered by alternative lenders.
Ensure you are not paying for features you are not utilizing, such as an offset account for which you pay an annual subscription but do not utilize.
Ensure that you are not paying excessive costs, especially now that numerous lenders offer low-fee home loans.
5. Set A Home Loan Balance Target
Consider establishing a target for your home loan balance as our final resolution recommendation. Determine how much of your mortgage total you intend to pay off by 2023.
A decent starting point is to determine how much you paid down your mortgage in 2022 and set a goal for 2023 that is slightly greater. Consider changes in your salary and personal circumstances when determining how much you can afford to repay.
Having a lower interest rate and lesser fees makes it naturally easier to repay more of your mortgage. Schedule a Consultation with a Home Loan Specialist to determine if you may receive a better home loan offer in 2023 and save significantly.
