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LOWER YOUR MORTGAGE WITH THESE SIMPLE TIPS

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Written by Melanie Toye, March 6, 2012

Stop pulling your hair out from mortgage stress and read the below strategies on how to lower your mortgage without taking the fun out of life.

Below are the traditional ways that work:

• Add small additional payments each week to your loan. By just adding $20 a week to your home loan you will slash years off your loan. Although it may seem you are paying more upfront, overall you will be paying less, resulting in more money in your pocket.
• Create an offset account. Offset accounts are a great way to keep interest rates down while at the same time lowering your home loan mortgage over time. By adding your savings into your offset account, you lower the interest you pay on your home loan.
• Deposit lump sums. When tax time rolls over, use your tax payouts to add to your home loan. Even just adding half of the tax payout into your mortgage will be a great advantage to your pocket over time.
• Refinance. Speak with an Australian Mortgage Manager to work out which home loan mortgage would be the best for you. It may just surprise you that your current deal is not as great as it could be. Refinancing can lower your repayments and save you a lot more money down the track.

Now for some creative ideas:

• Get creative and explore how you can make an additional $50 a week. Look at your skill set and interests and brainstorm what possible roles may come from it. For example, do you love getting out in the sunshine and going for a walk? Become a dog walker and while you receive some puppy love, your body will reap the benefits from the exercise. As well as this, your mortgage will be decreasing steadily over time.
• Do you have items lying around your home that no longer interest you? Don’t chuck it – sell it. Online shopping and selling is an easy source to reach people who want your unwanted items. You would be surprised at how much you could sell.

There are so many ideas out there to earn more money. Every little bit helps. For extra motivation, watch your mortgage balance get lower and lower with every bank statement you receive. Now, stop stressing and go enjoy your life.