Finance - Re-visiting your mortgage could improve your financial future
What better time to think of improving your financial future than now? Lenders are offering discounts to attract new customers. Re-visiting your mortgage can mean savings which in turn can help improve your overall finances. However, it has to be done systematically. If you don't have the time or the knowledge to undertake the exercise yourself, seek professional help.
First, it is important to ascertain if you have the best loan product to suit your individual needs. You may have had the best product when the loan was originally taken out, but with changing personal circumstances as well as the economic trends, there may be another lender and/or product more suited to your needs now.
Then take a good look at your budget. See if there are any expense areas that you can trim. Every dollar saved and put into the mortgage will make a huge difference in the long run.
If you have been comfortably paying the mortgage at the higher interest rate, continue to do so even when the interest rate is reduced. The extra amount you are paying will reduce the loan term and help save on total interest payable.
Also think of other minor adjustments to the repayment. For instance, if you are paying the mortgage monthly, change it to fortnightly. If your minimum repayment amount is an odd figure, for example $1,862 per month; round it up to $1,900 or if you can afford it to $2,000. The additional repayments will cut many years off the loan term.