Do you want to save money on your mortgage? Especially in times of high interest rates, finding ways to make the financing of the property of your dreams cheaper becomes more and more necessary and essential for the financing to weigh less in your pocket.
Pay your financing more often
This is a simple method that everyone can use quite easily. Most people make monthly payments, coinciding with the payment of wages. If you increase this frequency and add one more annual, semi-annual or monthly payment, you will save a lot of money with interest.
You can increase this frequency of payments by selling part of your vacation and paying off the financing with extra money, taking another part-time job, using your thirteenth, using company performance bonuses, income tax refunds. Be creative, and you will find several ways to advance some payments on your home financing.
Beware of credit card
You might be wondering what your credit card is doing in an article on real estate financing. The answer is simple: interest.
The Brazilian has become increasingly indebted. One of the causes of this indebtedness is the installment of the card bill when the consumer is unable to pay the entire bill on the day of payment. Also, payment of invoices is often delayed, which causes the payment of fines and interest for late payment.
You should only have a card if you can pay it on time every month and if you are disciplined not to spend more than you can. Leave the invoice on automatic debit, preferably, and never split your invoice. The savings you will achieve by not paying interest and penalties can be used to increase monthly payments on your home loan and result in lower interest costs on the total loan.
Quickly paying off your mortgage
By squeezing your bills and planning your payments, you can quickly pay off your mortgage and cut high interest costs. (Photo: blog.credit.com)
Avoid having bank accounts at different banks
This is another simple one. Have you checked all of your bank statements recently? Chances are that if you have another bank account at another bank, you will be paying unnecessary fees and charges to keep the account open, even if you are not using it. The same works for credit cards.
Close all unnecessary accounts and credit cards and place all your banking transactions in one bank. Often, with your real estate financing, it is possible to obtain lower interest rates through a personalized service package, by bringing your salary account to the institution or simply by the more exclusive relationship with the financial institution. In addition, savings in fees and tariffs will help to save good money for a higher frequency of installment payments.
Research the portability of your financing
It takes a little more effort, but it is really simple. You must research interest rates and tariffs in different institutions in order to negotiate portability. You must compare rates and fees using the Total Effective Cost (CET) of each financial institution. The smaller, the cheaper your home loan will be.
Try to negotiate a payroll loan, or make a relationship with the bank to further reduce interest rates during your search to compare portability rates. Don’t be afraid to renegotiate your loan too when interest rates drop.
Save to increase the installments you can pay
As we mentioned above, by paying your financing more often, you reduce the total interest you will have to pay. By wiping your finances a little and tightening your wallet a little, it is possible that you will find extra money to increase your installments.
But how to save? You can cut lunches away from home, daily coffee at the bakery near work, share the car with other friends to go to work. In every corner, there is a little to be cut, just make your budget and start to see where your money is going.
Consolidate your debts
Those who have multiple debts, loans, credit cards, vehicle financing and others should look for a way to consolidate the debt. It is not always possible to consolidate all of them into one debt, but you can combine some into a lower interest loan.
Consolidating your debts, for those who still don’t know, means paying off all your debts with a lower interest loan and starting to pay only that loan, in order to save on the total interest paid for the debts. Talk to different financial institutions to check interest rates on loans and see if they can consolidate your existing debts.