Top Three Tips To Own Your Home Sooner By Paying Off Your Home Loan Faster

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Are you paying off a home loan? Want to own it sooner? Paying off your home loan faster is something that everyonehome loan wants to strive for. Unfortunately, many people don’t know the simple tricks that can help to pay off a home loan faster. The following are some Fort Lauderdale property management company tips to lowering the principle amount of your home loan so you save money in the long run.

Trick #1 – Use Offset Accounts: An offset account is a special account which is linked to your home loan, but allows you to handle your money like normal. Every dollar that’s in the offset account, offsets the home loan amount. This means your interest rates are less and you will be paying less over time. For example: if you have a loan amount for $250,000 and you have $10,000 in the offset account, your loan amount will be calculated based on $240,000. Offset accounts are known for lowering home loans faster and are great for saving money in interest.

Trick #2 – Be Credit Card Smart: Using your credit card wisely can also help to lower the home loan amount. Because you’ll want to leave the money in the offset account as long as possible, you can use your credit card to pay for your monthly expenses and take the money out of the offset account to pay the credit card back in full at the end of each month. In order to do this however, you need to be disciplined and not spend more than what is in the offset account.

Trick #3 – Find A Lower Interest Rate: Any Fort Lauderdale property management company will tell you that to pay your loan off faster you need to find a lower interest rate to reduce your overall payments. Many banks offer different interest rates and allow for easy transfer of loans from one bank to another. The interest rate is calculated every month resulting in interest going back onto the loan amount. Lowering the interest rate will lower the amount that is placed back on the loan in interest each month.

Conclusion

Paying off your home loan faster isn’t impossible, all you have to do is know the simple tricks and tips needed to reduce the home loan faster. So are you going to try any of these simple tricks from reliable Fort Lauderdale property management companies to see if you can pay your loan off faster?

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Showing 2 comments
  • Faylinn
    Reply

    My husband and I just took out a home loan, but we definitely plan on paying it back as fast as we can. We try to be really smart with how we use our credit card, but I’m not sure that either of us know much about offset accounts. Can I set up this particular account with my regular bank and have it connect to my loan still?

    • keith
      Reply

      Hi Faylinn,

      Firstly, thank you for taking the time to read our blog. Offset accounts, depending on where you live, can be setup by banks which offer home loans. Some banks may not offer them however, it depends on the home loan provider. All you need to do is ask your home loan provider about whether an offset account is available. They are generally connected to your home loan and any money that’s placed within it will offset the amount owed. If applying for an offset account your home loan may need to be on a variable rate depending on the bank. Make sure you read the fine print as well in case there are any hidden fees or charges. Different lenders have different variations in their rules and regulations. Hope this helps. – Keith, Republic Property Management.

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