Saving money on your mortgage

A couple of pointers on saving money with your mortgage.

12:47 05 January 2014

Having a long-standing mortgage can take a toll on your finances. Hence it is important to find reprieve anywhere you can.

The day that you purchase your first home is the day that you can truly say that you have somewhere to put down your roots. While it is one step in creating a legacy, it is also a long term commitment to a mortgage. Mortgage management is essential if you are to avert haemorrhaging money in the long run. That is why you should explore a variety of cost cutting measures to give you some financial reprieve.

The following are some of those techniques.

When you are purchasing a house for the first time and you are contemplating about getting a mortgage, it is easy for you to get lost in the mire of details. That is why you should compare the monthly mortgage payments out there. Look at the introductory rates critically before making a final decision. Informed decisions are essential if you are going to pen your signature to mortgage payments for decades to come.

Now you have identified a mortgage you are comfortable with.

The next step is to look at the various deals that lenders offer you. The last thing that you want is to overpay your mortgage and pay early repayment penalties. Overpaying the mortgage is not a bad thing_ the bad thing is to do so haphazardly. That is why it is essential to get arrangements for overpayment in writing. Get the deal that reduces the interest when you over pay your mortgage every month by a certain amount. Only then can you be assured that you are getting a good deal.

If you are contemplating about getting out your previous mortgage deal, be wary of penalties. When remortgaging always weigh the pros and cons of the move since it can potentially dent your pocket.