The start of a new year often leads to promises you make to change something or achieve a goal. Maybe you want to get out of debt, save more or spend with a purpose. Since many people fail to stick to their resolutions, COListings wants to help you. Whether you are a homeowner, intend to become one, or plan on moving this year, consider these 5 resolutions to bring your goals to fruition.
Set yourself debt free
If you are struggling with debt, you are living with constant stress and feeling like you will never get ahead financially. Paying off debt sets you free in so many ways. It opens financial doors and does wonders for your credit score. Think of all the things you could do in the future with the money you save on payments and interest. Use that motivation and find ways to spend less toward things you don’t need and use that money to get debt free.
Make payments with a purpose
If you want to start spending with a purpose, consider making additional payments toward your mortgage. Imagine saving thousands of dollars and years off your mortgage. If you redirect what you spend money on, extra money can go toward the principal balance each month. Take a $400,000 loan for example. If you have a 4.25% interest with 25 of its 30 years left, you could save $21,107 and take two years off by paying only $100 extra each month. That is spending with a purpose and you will thank yourself later for starting it now.
Pay on time
The longer bills are paid on time, especially your mortgage payment, the higher your credit score. These good payment patterns will help you to achieve a better loan with a lower interest rate. This will save you thousands of dollars on any mortgage loan. Even a 1% change on an interest rate could mean hundreds of dollars saved every month.
Lower your rate
Refinancing your mortgage to decrease your monthly payment or locking in a fixed rate might be a smart move in 2017. The same goes if you are looking to buy this year. With interest rates expected to rise in the near future, you will want to start the process now to make sure you get the best rate to save you money. Don't be afraid to shop around to find the best rate.
Save on homeowner insurance costs
The price you pay to insure your home can vary by hundreds of dollars. It all depends on who you buy your policy from and what you buy from them. Start by getting recommendations. You don't want to go with the cheapest company and be stuck with horrible service. Also, consider combining policies. Often when you bundle coverage on your home and vehicles, you get a better rate. If you have made security or building improvements, you might qualify for discounts. If you are looking to buy a home, insurance is often cheaper if the home’s electrical, heating and plumbing systems are less than 10 years old. You also need to be aware it will cost more if you choose a home that requires additional insurance if it is in a flood plain.
The agents at COListings are standing by to be your personal trainer. As local real estate experts, they can help you with the dedicated assistance you need to achieve your homeownership goals. Reach out to a COListings agent today and make 2017 your best year ever.