Once you get the mortgage, you need to consider certain things from time to time to ensure whether everything is working right for you so that you can do mortgage repayments without any hassle.
Review Your Mortgage
You should check the repayment mortgage level and interest rates like twice a year.When you check note down the certain things like
When your fixed mortgage loan is about to expire
What is the interest rate on your adjustable rate mortgages?
Whether you received any lump sum amount like inheritance and you can use it for mortgage repayments
Is your monthly payment is still seems affordable?
Can you devote some money from your budget towards the mortgage repayments now? Because even if you can allocate some extra $20 every week, it will help you to reduce your interest rates and start your interest free life quiet earlier than you planned.
Check out how much amount you can save on the mortgage rates by making the mortgage rates comparison
Increasing your mortgage
If you face trouble by paying some high interest rate loans like vehicle loan 17% and credit card loan by 17% you can increase your mortgage amount and pay off the current debt with this amount. But the thing is you will be ended up with some high mortgage repayment every month and your term will also get increased.
If you want to avoid the long term you need to repay the mortgage + car amount as planned before. For example if you want to pay off for the car loan you can get the amount through mortgage bu you should repay the amount within 5 years.
There are times when you can save several thousands of dollars by just restructuring the loan. If you are paying high interest rates in one or all of your loans you can switch those particular loans from high interest paying lender to low interest offering lender. Remember if you choose the wrong ones then it may even worsens the situation. Check out the saving and interest rates before switching to the new one. This switching from one lender to another or switching from variable interest rate to fixed interest rate may cost you around some hundred dollars. However this cost is negotiable.
If you feel like you can’t manage the negotiation by yourself it is a good idea to make your broker to deal with the lender.
You can expect the following charges when switching from one lender to another
- Early repayment fee in case if you are switching from the fixed mortgage rates
- Application fee which is charged by the new lender
- Loan Valuation cost
Not all lenders pose all these charges on a new client. Some may charge one or more of these costs. It is good to write down what are the offers provided by various mortgage lenders.
On Mortgage repayment some lenders used to offer a period like mortgage holiday. When you are on this period they won’t ask you to pay your monthly payment but still the interest rate posed on your mortgage will remain the same. Sometime this period will continue up to 3 to 4 months.
You should start to repay the mortgage after this holiday else you will need to pay really high interest rates than the normal one. So it is good to utilize this period at the end of the term.
What you should do when you can’t make further payments?
If you feel you can’t pursue the current repayment mortgage then it is good to contact your lender immediately. They will offer some other plan for you so you can save yourself from the foreclosures.