Every homeowner dreams of going mortgage-free. There's nothing like taking a look at your house and knowing it is unconditionally yours. And without those hefty monthly payments, it gets a lot easier to save cash and start thinking of retirement!
If you're anxious to finish the mortgage payments, we have four expert financial tips that can help:
Save on interest with overpayments
If you have a mortgage and have been paying for a few years, there's a good chance you're paying an affordable monthly fee to the bank. There's also a good chance that such a fee no longer takes up most of your monthly salary, especially if you bought the house a long ago.
If that's the case, you should try to talk to the bank about making overpayments. Paying more than needed each month may sound like a not-so-smart move, but it's a great way of becoming mortgage-free sooner while also saving on interest!
Offset your savings
Banks love savings even more than we do! Source: Pexels.com
As a homeowner, you probably have some nice savings somewhere. And do you know who loves savings? Well, banks do! If you offset your savings by linking them with your mortgage, you'll most likely be able to save on interest. This makes sense because banks love financial safety, and nothing screams "I will pay you on time" like a good chunk of carefully-saved cash. According to the experts, one can save up to hundreds of thousands of dollars with this method.
Rent Out a room
Renting a room to a college student (for instance) is a great way to make some extra income. Source: Pexels.com
Once the kids grow older and move out of the house, you may feel like turning their empty rooms into an art studio or fitness room. But here's another idea: why not rent the spare room to make some extra money every month? We know that the idea of living with a stranger is not for everyone, but it's irresistibly profitable.
Stick to the plan
Don’t be afraid to ask for professional financial help. Source: Pexels.com
Whether you're dreaming of early retirement or looking to save as much as possible on interest, the number-one priority should be to stick to the plan. To navigate the world of finances with all the safety required, it's advisable to think long-term and to know what your goals and expectations are at each life stage.
If you're not a financial whiz, don't worry: you can always get some professional help to draw a proper financial plan. The money you'll spend on experts will always be worth it, even if just to provide some much-needed peace of mind.
