Know your financial condition
It is of uttermost importance that you know about your financial condition. Most people are certain that they have a sound idea of their financial condition but it is not the case. In order to have a sound idea of your financial condition, you must review all your financial obligation and credit details and compare them with your income. It is important that you compare your borrowings with the total income to know what you can save from your income. Most importantly, you should be able to forecast your income from the current point to the next five years.
Look for additional service charges
Some people undermine the importance and levied charges of additional services along with your mortgage payments. Keeping in mind your current and future condition, you must take a wise decision whether you want to incur these additional charges or you want to get rid of them.
Identify extra mortgage principal
After you have made the decision about additional service charges, you must identify your extra mortgage principal. You must find out your monthly mortgage payment and divide it by the number of months to know your extra mortgage payment. For instance, if your monthly mortgage payment is $2000, then divide it by 12 and the answer ‘$167’ will be your extra mortgage payment.
Make online payments
You can also make the online payments to your lender or banking institution. You must ensure that the payment is transferred in a proper manner and no extra payments are applied to the principal.
Save the due amount from your income
Most people do not save the amount from their monthly income and then they find it hard to pay a lump sum amount. Therefore, it is important that you save a proportion of this from your income and pay it to the lender biannually as this will make things easier for you.