Save Money On Your Mortgage

by Kaylie Phelps

Finding little ways to save money on everyday expenses is super important for financial well-being. However, when it comes to the biggest expense in the budget, people sometimes get lazy with their frugality. Fortunately, it’s easy to cut out a lot from your budget simply by saving money on your mortgage.

Home Refinancing

The most automatic way to save money on your mortgage is to refinance your mortgage. The easiest way to explain what a mortgage refinance is is to imagine that you’re canceling your original mortgage and getting a new one at a lower interest rate. Usually people will go to a new lender to get a better interest rate, perhaps even an international lender like STK Finans.

Obviously refinancing a mortgage isn’t free – fees can run in the hundreds or thousands of dollars, depending on how large the balance is. However, once you’ve refinanced, the lower interest rate automatically begins to save you money. Plus, when you’re getting the new mortgage, you can shorten the term of the loan to save even more!

Find a Roommate

The most difficult, but most lucrative means of saving money on your mortgage is to get a roommate. The roommate can either rent out a room in your home or, if you’ve got a bigger property with a separate entrance you can create an income property. Sure this involved slightly higher gas and energy bills but once you find the right tenant, you have a viable, long-term income stream.

Rent prices vary but Separate income properties or room rentals can bring in anywhere from a few hundred to a couple of thousand of dollars a month depending on the size of the space and the neighbourhood. This money can be collected and used to make lump sum payments on your mortgage.

Lump Sum Payments

Lump sum payments are a flexible way to lower your mortgage balance. Most mortgages have a clause in them that allow borrowers to pay a certain percentage of the money owed in a lump sum payment each year. Since the cost of borrowing is directly related to that amount of money you owe your lender, lowering your balance immediately saves you a bit of money.

It’s hard to get ahead in today’s world. Finding any way you can to save on your mortgage is invaluable to leading a good life and having money for vacations and retirement.

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Tips for Turning Your Credit Around in 2016

by Kaylie Phelps

Credit scores will matter even more in 2016 than they did in 2015. With the economy threatening to see interest rates rise, lenders are going to place more weight on this score than ever before. Don’t be left behind or you could find it impossible to obtain any type of loan. Those who already have bad credit are in the most vulnerable position. We’re going to show you how to turn your credit around in 2016.

 Figure Out Your Budget

To begin with, you must figure out your incomings and outgoings in a normal scenario. In other words, take your salary and your conventional household bills. Only then should you add on your debts. After that, look at whatever you have left. You have to change your budget until you can at least cover the repayments on your outstanding debts. Paying your bills at the right time is the cornerstone of any credit score. It accounts for at least 30% of the whole thing, which is by far the biggest proportion.

Total Credit Limit

For each credit card you have, figure out what 35% of your total credit limit is. You must never go over this magic number. In the eyes of credit card companies, anyone who is using more than 35% of their total credit limit is in trouble and is relying on the money of others to get by. There may be some truth to this, but whether you agree with it or not you must get your credit card debt below this percentage for each individual card.

Longer History Trumps All

The longer your credit card history the better, even if you’ve barely touched the account in years. You can technically have a credit card that you haven’t used in years and it will contribute to a positive score. Even if you intend on never using certain cards again, cut up the card but leave the account where it is.

Closing an account can actually reduce your score. This is usually caused when your total available credit goes down.  Another thing to be cautious of is to not have too many personal loans.  Often times people with bad credit take out several personal loans to help pay for things they don’t need.  Personal loans are fine just as you are responsible with them.

Correct Mistakes

So many people don’t request a copy of their credit records when they get into a situation where they have to review their credit. You would be surprised at how often the major credit reporting agencies make mistakes. There are people who have completely altered their financial prospects by correcting the mistakes of others.

Reduce Credit Enquiries

Making enquires for new cards and loans will stay on your record for two years. For one year, it will reduce your score. A rejection makes it even worse. It’s an interesting line of thinking because applying for credit is bad, but so is not having any credit at all.

In short, only apply for the lines of credit you believe you have a good chance of being accepted for. Furthermore, you should make an effort to not apply for too many cards in a short space of time. Try to space them out as and when you need them. Hopefully, these tips will help you turn your credit around in 2016. What other tips do you have for a better credit score?

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