2020 New Year Resolutions for the Homeowners
Every New Year, you vow to lose weight, plan for vacations, or explore new opportunities. Yet, did you set any goals for your home? You keep making monthly mortgage payments, follow the same old policy, without searching for better interest rates, etc. However, because of this, you keep spending more than you should.
This time of the year is the perfect time to begin over with new financial resolutions to make a materialistic move. With these New Year resolutions, you will be able to be a responsible homeowner. It will enable you to reach closer to your financial fitness goals this year.
PMI (Private Mortgage Insurance), try paying down the balance as soon as you can. PMI is costly, so
1. Pay Off Your Credit Card Debt
If credit card debt is pulling down your financial stability, why not make a goal to handle it in the New Year? Paying off your credit is crucial to get rid of the excessive debt and then hit your mortgage payments later. However, if you keep dangling the payoff, you are losing your credit score in return.
2. Cut Down the Use of Energy in Your Home
Going green will be of great value this year to make it remarkable. Homeowners must ensure to turn off the lights if not in use or recycle the materials. Use LED lights, insulate the duct, set up solar panels, etc. to trim off energy. It will significantly cut down your bills if you upgrade your home with the right set of appliances and electronic devices.
3. Pay Your Principal Amount
Economists have said that the homeowners must pay off their debts with the highest rates first. It will help in wiping off the extra amount from your shoulders. If you have taken PMI (Private Mortgage Insurance), try paying down the balance as soon as you can. PMI is costly, so paying out the principal amount can help you refinance your way out from PMI, or maybe the bank can reduce your monthly payment. There are many ways with which the homeowners can prepay their mortgage. Few of them:
– Every year try making extra mortgage payments.
– Add a lump sum amount to your principal balance.
– Add some extra money (above the minimum amount) and reserve these dollars for the principal.
While you make extra payments towards your principal, ensure that the lender is aware that this money is for the principal. Or else it might happen they apply this amount to your next month’s mortgage payment.
4. Search for Better Insurance Rates
Homeowners cannot avoid property insurance. Although, annually, they can shop for better insurance rates to maximize their savings. After the year has rolled out, homeowners must check if any current policy is available at a lower interest rate for them to renew. Researching for insurance policies will help them understand the coverage offered through their current policy, and what the new ones are giving.
5. Refinance Your Mortgage for Better Loan Terms
Experts recommend if the homeowners have an interest rate of 4 to 5 and those who don’t want to sell the home too soon, they can opt for refinancing. It is one of the best ways to begin your New Year. So, think about the ways you can reduce your monthly mortgage payments through refinancing into better loan terms.
It is necessary to create a plan that will help you stay regular with your mortgage payments with suitable loan terms. If there is any difficulty in staying up with your financial goals, Drew Mortgage will help you achieve the financial resolutions for the New Year. Now, homeowners can secure their home and New Year financially under the guidance of FHA 203K Rehab mortgage lenders in MA.