Most homeowners dream of one day being able to pay off their home and live a life free from mortgage payments. Just think what you could do with all the extra money you would have if you didn’t have to pay your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage payments.
Step One – Demand Better Service!
As a loyal customer, your mortgage lender might be able to help slash monthly costs. But your mortgage lender will not reward you unless you specifically ask for a better deal on your mortgage.
So, get on the phone, call up your lender, ask to speak to someone in customer service and explain that you’re looking around for a better mortgage deal. Ask them for an evaluation and let them know you’re going to approach other lenders to find the best deal.
If you’re a valued customer, you might receive favorable feedback and receive a better offer from your current lender.
Remember, if you don’t ask, you won’t get anywhere!
Step Two – Shop Around.
If step one doesn’t get you the deal you deserve, shop around. There are hundreds of lenders seeking new customers, ready to offer incentives to switch your loan over to them.
Use the internet to get an idea of current interest rates available to you. Lenders will do everything they can to make their deal seem like the most attractive deal available.
Look for any hidden charges or tie in clauses, and make sure you evaluate products offered on a like for like basis, taking into account all the features of the mortgage offers available.
Step Three – Call in the Cavalry.
Well, not the cavalry exactly but expert assistance in the form of a licensed and regulated fee free independent mortgage broker.
As independent brokers, they have access to, and an understanding of, every mortgage product available. They’ll be able to help you understand what your mortgage options are and if a better deal exists for you.
Make sure your broker is fee free and remunerated by the mortgage company you work with. More importantly than this, verify they are regulated and licensed and ask for professional references or testimonials.
Step Four – Cut Out All Extras
Mortgage lenders are notorious for selling overpriced add-ons such as life insurance, contents insurance and income protection coverage. All these extras have their value of course, but you can often get them for a fraction of the price by going directly to an independent insurance house or seeking the services of an independent financial adviser to find the best deal available.
You could literally save yourself thousands each year in insurance premiums!
Step Five – Throw Some Money at It
You’ve cut your interest rate down to size, reduced your monthly payments, and saved yourself thousands on insurance products…congratulations! Now put all those savings back into your mortgage and repay early!