New Year’s Resolutions for Homeowners

homeowner tips for financesIn our last post we discussed some New Year’s resolutions for those who want to take the next step from renting to home-ownership. Of course, you may already be a homeowner. In that case, take a look at some financial tips for 2016 to help you save money and pay your house off sooner.

Make extra mortgage payments

Paying off your home sooner means you’ll be one step closer to financial freedom. Imagine what you could do with that money every month, from saving to retirement or paying for a child or grandchild’s college education to investing in a vacation property or real estate investment. To get to that day sooner, try to make extra mortgage payments when possible.

As Bankrate illustrates, the savings can be quite dramatic. For instance:

The monthly principal and interest on a $150,000 mortgage with a 30-year term and an interest rate of 5.5 percent totals $852. Paying an extra one-twelfth of that amount, or $71, each month would increase the payment to $923, but also shorten the term by five years and one month and cut the interest expense by $30,789.

Seek out homeowners insurance discounts

Did you make repairs or improvements to your home in the last year? If so, call your homeowners insurance agent to review your coverage and see if you’re eligible for any discounts. New plumbing means less risk of a burst pipe, a new roof means less risk of water damage, etc. If you are eligible for discounts you might be surprised how much money you save each month, which could then be put towards even more improvements, or other savvy measures like making extra mortgage payments.

Refinance your mortgage

Mortgage rates are still well below the historical average rate for a 30-year home loan, so depending on what your original mortgage rate was when you bought your house, you may benefit from refinancing. And if you have a variable mortgage, it’s a really good idea to go for a fixed rate. Even if you end up with slightly higher house payments, you’ll probably be better off in the future with the safety of a fixed rate.

Want to make a change this year? Whether you are a first-time home buyer, wanting to downsize to a more manageable home, or maybe you are ready to upgrade from your starter home to a gorgeous new dream home, our Woodstock Keller Williams real estate agents are at your service! Give us a call at 678-494-0102 or stop by our office, located on Main Street in the vibrant Downtown Woodstock area.

 

 

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