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How to Repay a Mortgage and Live Peacefully




You can repay your mortgage loans without any risks if you follow the simplest guidelines we have listed here. Early and delayed repayments may attract penalty in some of the lending companies. So, you have to plan your repayment exactly according to the plan given by the lending company.

But there could be some issues from your end which may lead to short of funds. Here is how you can avoid such situations.

Plan for Mortgage

Salary Deduction: Follow the payment schedule for principal and interest every month. If you are an employee the best way is to deduct the loan at the source. It is possible to link your mortgage with your salary account. You can consult your company’s finance department and complete the required formal procedures. Then you don’t need to worry about allocating a fund for repayment every month. Moreover, you may get the benefit of tax deductions in your salary while paying for the mortgage.

Fund Allocation: If you are self-employed or a business owner, it is possible to plan your budget for the repayment. You have to do it before applying for the mortgage loan from the lending company. Only then you can adjust your other funds and ease your repayment.

Calculate Affordability: In both the cases above, you need to calculate your repayment capacity before applying for the loan. Discuss with your family about the restrictions they have to face on non-essential expenses.

Clear Debts:  Clear all the other pending debts before applying for the mortgage. It is a good practice since you can win the trust of the lending company. It will also put you in a financially comfortable position. You don’t need to worry about making multiple payments and running the risk of being penniless.

Credit Rating: make sure you have a higher credit rating. You can make most of the purchases through the credit card which will help in creating the base for rating. But you should make all the credit card payments within the deadlines. It is the only method of boosting your credit rating for the mortgage lending company to appreciate and trust.

Plan for Expenses

Plan your personal, family and household expenses at the start of the month. Categorize them into critical, emergency, and essential groups. All the others will be non-essential. Eliminate the non-essential expenses and optimize the others. Make sure you have sufficient funds for emergency and medical expenses.

Plan for Extra Income

Every financial plan you make for a mortgage will be automatically accompanied by the need for generating extra income. It is the most comfortable way of allocating funds for your loans without having to be miserly on other expenses.

You may choose to take apart time job, freelance works, or choose other stable sources of income. It should be sufficient to repay the principal and the interest every month. Physically and mentally you may have to strain more in your everyday life. But your financial position will be stable throughout the repayment period and after the completion of the mortgage.

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When to Stop Dreaming and Start Building Your Dream Home



Build your dream

You have been dreaming of a home for many years. You have also been saving a significant part of your income. You are still waiting for the right time to start building your home. Today is the time for you to take proactive steps without procrastinating further.

Evaluate Your Savings

You may have done the savings in many forms. Bank accounts, stocks, bonds, and other investments can be useful for making down-payment to your mortgage loan. But you’ll need to convert them into cash assets before taking up the mortgage project. You can consult your stock brokers and find the fastest possible ways to transfer the investments as cash into your bank account.

Simple Practices

Credit Rating: It is essential to have a decent credit rating and plan for ways to improve it. The first task is to start paying your bills through credit card. Clear your credit card balances on time. Keeping a low balance can help to increase credit ratings.

Credit Limit:  Increasing your credit limit is one way of avoiding negative credit rating. It can also increase your purchasing power and the loan limits for a mortgage.

Reduce Debts: You have to reduce other debts and clear the existing ones as soon as possible. Giving top priority to your home building means you have to forget about other luxuries like an expensive car, jewelry, holiday travels, etc. Initially you may find it to be a tough task, but eventually, you will get conditioned. Then it is possible to have a low debt which is a positive booster for your mortgage.

Plan Your Budget

The budget for the dream home should be within your repayment capacity. Evaluate the basic accommodation you need in your home. If you are a small family, it is better to plan for a two bedroom home.

Buy or Build: You have to choose between buying an apartment and building your home. A real estate consultant can give you the best advice based on your budget. If you own land it is better to build. It gives you scope for extension in the future. You may think of extending your rooms or building additional structures when the finances stabilize.

Buying is more economical than building. You don’t need to deal with the hassles of contractor management, material management, inflation, and other uncontrollable factors. But your home may be restricted in its dimension and facilities. It is better to take a decision after consulting with your family.

Mortgage Loan:  You can apply for a mortgage loan after talking to your consultant. He can advise you about the right bank or financial institution to approach. If you are an employee and have a regular source of income, it is possible to approach a federal or state-owned public bank.

Low-interest rate and flexible repayment policies will make your mortgage simpler. Make sure you have insured your home for fire, external elements, and other forms of damages. You can start building your dream home now by taking the proactive measures listed here.

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Top Secrets of Overcoming Miserliness



Spend money

Miserliness is a miserable state of mind in which an individual may refuse to spend for the most essential needs of his life. Or he may wait for Christmas and festive discounts to buy his T-shirts and inner-wear. He neither attends parties nor hosts them.

He may prefer a cycle rather than taking his car or a metro-rail while traveling to the office. The last meal he had in a restaurant might be on his wedding day 10 years ago. You can go on listing many such aspects of being miserly. If you have three or more such symptoms, it is time to examine your behavior and make changes.

What Makes Misers

Most of the misers of your previous generation or before became so due to circumstances. They might have gone through the periods of economic recession. They might have struggled from hard conditions to become prosperous. They still carry the conditioned mind that forces them to save.

Fear of financial insecurity is built so deep into their psyche, that it becomes almost impossible to remove it. In fact, they might have lived with it for the most part of their lives. They might have filled the minds of their children and grandchildren with similar psychic ideas. Generations can become miserly and live like vagabonds in spite of having plenty of money with them.

How to Overcome Miserliness

 You may be miserly die to mental conditioning. It may not be so easy to overcome it. But it is not impossible.

Come to Reality: Spending on your needs and the needs of your family is not being spendthrift. Make a list of essential things for your home and family. You have to eat nutritious and tasty foods to enjoy your life and stay healthy. You will need electrical and electronic appliances for running your household easily. You will need a car or a motorcycle to travel to your workplace.

The other things your family may expect could be an annual family vacation, eating out on weekends, going to a movie, or visiting your friends and dear ones whenever you get a holiday.

List family Essentials: Make a list of such essential things with your spouse. Let her prepare the list of her needs and let your children make their own. Be prepared for the shock. Then you can filter only those things which are extremely essential.  Now life may seem to be easier and better.

Enjoy the Essentials:  Once you buy the essentials and get comfortable, it is possible to look at life from a different perspective. We do agree that material possessions alone may not bring happiness to life. But they can ease the burden of living your life only for the purpose of survival and sustenance.

Spend for Family: Once you start spending for the happiness of your family, life becomes more meaningful. You will start realizing the goals of your life better than before.

Earn More: Soon you will think of earning more rather than trying to be miserly and miserable. You can experience better earning opportunities knocking on your door like never before.

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