Regardless of what you owe, paying down your mortgage is a smart money move. Here are the best ways to do it.
Reduce your spending:
You don’t need to make massive sacrifices but cutting back on things you don’t really need will make a big difference. Look out for invisible money drains, such as cable bills, for a hoard of channels you probably never have time to watch. Swap fancy vacations for staycations.
Pay off your credit card debt:
Once your debts are paid off, you’ll have more money freed up to put toward your mortgage.
Increasing your income will help you pay off your mortgage faster. There are countless ways to make extra cash. Selling on eBay, taking up a second job or taking in a renter are just some of the ways you can supplement your income.
Get a high-interest savings account:
Though you’ll want to increase your mortgage repayments to pay off your debt quicker, you might want to put any large amounts of cash in a high-interest savings account. Gaining extra interest on your savings can then be used to pay off your existing mortgage.
Save all windfalls:
Put your annual bonus, increments, investments earnings or surprise winnings towards your mortgage repayment.
Make one big payment:
Check with your bank if you can make an extra payment each year. This is usually applied directly to the principal and is a great way to chip away at your mortgage.
Keep up-to-date on interest rates and new mortgage options. You could save a ton of money by simply understanding what your options are.
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