Who doesn’t like to pay less? Saving some money is always welcome, as it can be used to pay debts, buy something that was missing at home, or simply not be as tight during the month. Taking all this into account, you will undoubtedly be happy to know that you will be able to save on the payment of your mortgage credit.
Whether you are paying your mortgage right now or you plan to apply for it in these months, these tips will be of great help because they will show you what tools or tactics to use so that the interest to be paid is reduced. Remember that a change, however small, in your credit rate, can mean a few months less than payment.
So what can you do to generate savings on your credit payment? We show you now:
1. Find a debt purchase
This involves transferring your mortgage debt to another bank. How can it help you pay less interest? Something to keep in mind is that the market is constantly changing and the rates that were the best six months ago are likely to have been improved by other entities. So if you are a good customer and have made payments on time, any financial institution would be happy to transfer your mortgage under their wings.
This will allow you to negotiate a new interest rate, which will result in the money savings that we are looking for. Is there a limit of times you can do it? No, that is totally up to the user, but it is always advisable to evaluate what they offer you and even give your current bank the opportunity to respond, because sometimes they tend to surprise you with a better deal.
2. Acquire insurance from outside the bank
Mortgage loans come with some insurance that are mandatory, however, it is not determined that you purchase them with the financial entity that issues you the money. You can ask about external options that may be cheaper, this will also have an effect on the fee and the interest to pay. The recommendation is that before taking any action, perform the calculations carefully in order to have the real numbers and be sure that it does not imply an additional expense.
3. Suspend account statement shipments
Your statement shipments also represent an extra investment that may be reduced. How? Changing the delivery format; You can receive it in your email. This is not only more comfortable because you can consult the information from your cell phone or laptop, but it will also allow you to reduce spending.
4. Reduce the term of the credit
An additional way to reduce interest has to do with reducing the term of the loan. If you financed it for 20 years, it means that you will pay 20 years of interest. The less time you have the credit, the less you will pay. Of course, this causes the monthly fee to rise, so it is necessary to find a balance.
It is worth reviewing this point because in all the years that the credit lasts it is very likely that your working or financial conditions will change, especially for the better, which will allow you to be in a position to make larger payments and thus have everything you need to reduce the term of your credit.
5. Maintain a good credit history
While this is good when applying for any type of credit, it can also help you reduce the interest on your mortgage. The bank takes your financial profile into account when assigning interest rates; So, if you are about to request one and you have a good behavior, this will help make the conditions they offer you even more attractive.
If you already have a loan, don’t worry! Because you can still take advantage of this point, since, when requesting a purchase of debt or transfer of your credit to another entity, they will have to evaluate your profile. Many things change over time and working to improve your financial history is something that will undoubtedly help you generate savings with your mortgage credit.