No, you don't have to live in a tepee or a converted school bus to save on mortgage loans or live mortgage free. Although that's what many people do to avoid the mortgage trap that keeps them chained to monthly mortgage payments for years, even decades. You can own a home and pay off your house early, no matter how much the naysayer will scoff and try to hamper your efforts.

How do you pay off a mortgage early and still be able to put food on the table and enjoy life a little? It's not as difficult or out of reach as you may think. Paying off your mortgage loans early should be a high priority with any homeowner, whether you have money or not.

You don't need to be bringing in thousands of extra dollars a month in order to be able to accomplish this impossible sounding feat, either. With a little careful planning, some budget adjustments and a lot of determination, every homeowner can shave years off mortgage debt or even pay off a home in less than ten, or even five years! Is there a catch? No, you don't have to sell your blood to accomplish this seemingly impossible feat of financial wizardry, but you do have to be willing to sacrifice a little.

How can this amazing feat be accomplished? For one, if you receive a tax refund every year, don't spend it on cars, boats or spending sprees at your local mall. Instead, put that money toward your mortgage loans payments. Even $50 to $100 dollars extra a month will take years and tens of thousands of dollars off what you owe on your mortgage. So, instead of taking that yearly fishing trip on the other side of the United States, try fishing closer to home instead. Instead of that trip to Hawaii you take every year to celebrate your anniversary, find a place closer to home that will do just as well. For the ladies, give up those monthly spa treatments and pedicures or manicures and do it yourself! Guys, try golfing once a month instead of every week and you'll both save hundreds of dollars that can go toward paying off your mortgage early.

It may seem that your hundred dollars won't go far to pay off your mortgage early, but did you know that by paying $100 extra on a house payment can eradicate six years of mortgage payments over the life of your home loan? If you can put extra on once in a while, your saving will be even greater. Now, who wouldn't want to take advantage of that? Even those living close to the edge can manage to spare an extra $10 to $25 dollars a month on something, whether it's cigarettes, beer or just your local Target or Wal-Mart store habit.

Talk to your lender about increasing your payments, if you think you can swing it. If you can't, you can always go back to what you were paying before. At tax refund time, put an extra payment or two into your account and think of it as money well spent. Start another account for entertainment, vacations or extras, saving money from groceries, frivolous expenditures, eating out and other stuff. No, you don't have to live the life of a monk in order to pay your house off early, but the benefits of shaving years, or even decades off your mortgage payments will more than balance the things you have to give up for a while. You don't have to cut out entertainment altogether, just trim the edges a little. Instead of going out every week, make it once a month.

Learning to live in moderation is the key to coming up with extra money to send to your mortgage loans company. Get out your calculator and do the math. Who wouldn't want to save tens or even hundreds of thousands of dollars over the course of a mortgage! Don't sell your life away to own a home. YOU can take charge and pay a little extra every month, and benefit by living mortgage free in less than ten, or even five years, by following a budget.

Article Source: http://EzineArticles.com/?expert=Eddie_Lamb

Paying a monthly mortgage year after year gets old fast, but most people just go through the motions, thinking there's nothing they can do about it. However, with a mortgage payment calculator, you might be able to save some money. The first part of this article explained that by merely paying extra on your monthly mortgage payments, you could shorten the life of your loan by years, if not decades. All it takes is a little sacrifice, some determination, and knowing that your efforts will pay off, big time.

There are considerations that need to be addressed when it comes to determining how you go about paying off a mortgage in under five years, and that may depend on how much of a down payment you made, your current balance and interest rate, it is possible to take 6 years off your mortgage payments by sending in an extra $100 a month on your house payment.

By using a mortgage payment calculator, you can find ways to save money, and save big. Now, if you cut corners and reduce frivolous spending, most people realize that they can save that amount, but if things are really tight, you can still send in an extra $50 a month. Either way, you'll save thousands, even tens of thousands of dollars on the life of your loan by following these pointers.

Whether you come into some money or not, there are ways to curtail and cut back on extra spending every month that will allow you to pay an extra $50, $100, or even more on your monthly mortgage payments, which will save you between thousands to tens of thousand dollars on payments that mostly go toward interest and not principal.

Our last article gave you ten tips on where you can cut back spending. Using a mortgage payment calculator, you can insert different amounts of money that can be applied to your monthly mortgage payment and see how many years you can take off your loan. This article will give you several more.

These are just the obvious basics, but if you spend a little time, you'll be able to come up with more as well. This doesn't mean you have to live a boring existence for the sake of paying off your house, it just means trimming the fat. You can still enjoy that steak dinner or the play or Disneyland, but just not as often as you used to. Living mortgage free is worth some sacrifices and belt-cinching after all, and just think of all the extra money you'll have then to entertain yourself to your heart's content!

Here are some additional tips on where you can trim the fluff out of your monthly living budget.

Cut down on Entertainment Expenses: Do you really need that golf club membership or those season tickets to the football or baseball games? Do you have to attend every play or event held at your local opera house or theater? If you expect your kids and spouse to cut back, then you have to as well.

Cut back on Car Expenses: Can you walk to work? Take the bus? If you can, do it! You don't need that six CD-player installed in your car, either. After all, you can only listen to one CD at a time anyway. The same goes for frivolous extras like fancy rims, tires and accessories.

The Power of Saying 'No': Sure, we all like to treat our kids, but we don't always have to buy that bike or guitar that's just going to start gathering dust in a few months anyway. Kids are amazingly resilient, and if you treat them with less expensive gifts and fun, they'll be content. Really.

Clear Your Credit Card Debt: Sure, we live in the age of plastic, but try to curtail that as well, especially if you're paying more on interest than 10 percent. Get rid of your high interest credit cards and try to keep them at home more often.

Make Money at Home: Many people have special talents, whether it's playing musical instruments, creating crafts or other skills. Start taking in students in your spare time and offer language, guitar, craft and other types of skills to others willing to learn from you.

The possibilities are endless, really. By taking advantage of tools like a mortgage payment calculator and focusing on saving money, living mortgage free is not a pipe dream. It's a reality that's attainable by just about everyone, no matter how much money you make or if you're just getting by. There's always a way to cut back on living expenses, and that's the key to making it all possible. So, what are you waiting for!

Article Source: http://EzineArticles.com/?expert=Eddie_Lamb

Things are always better on the other side of the fence. Other people seem to be making the smart choices, from girlfriends to cars and even refinancing loan programs. Why not you?

Proact, not react

After making several bumbling errors, don’t make a serious mistake, not with a refinancing mortgage plan. A costly mistake at this time of economic hardships will surely make you miserable, while your friend is having a good time with his smart choice of almost everything.

Before you announce your grand design for a refinancing mortgage loan, do your assignment. Read up on mortgage news, and join forums. You can ask the silliest questions, assuming your knowledge on these matters is zero. How you got the first loan is questionable, and you are suffering for your haste and ignorance.

You can also tap information from various online sites to get a broader picture of the mortgage business. Perhaps your friend can recommend a broker. Or if you can, get an independent and reliable agent who can spell out the pros and cons without pressuring you into making a hasty decision.

How to choose your refinancing mortgage lender

Here are some tips to get even with your friend:

- Weigh the terms of the mortgage. Are you ready to be tied and bound for a 30-year loan? A longer term loan has a lower monthly payment. You can have extras for those little things in the house or for yourself. A 15-year loan will be more expensive, but you will be saving a lot on interests alone.

- Examine the advantages and disadvantages of a fixed rate to an adjusted rate. A fixed rate is stable. Throughout the period loan, you will know how much money to set aside monthly. A variable rate has the advantage of dipping into all-time lows, saving you more money. But when the rates soar to an all-time high and stays there for a long time, you’re dead meat.

- Do your math. Some lenders will charge origination or discount fees while others will not. Compare the costs. The lender boasting no fees will likely skim all your cream. So, find out if you are saving more from a lower rate. You might be astounded with your findings.

- Shop around for lenders. There will be one good one out there. Ask questions, and compare their responses. If you are unsure of the technical and financial details, then get a professional to help you.

- If you decide to stick with your current lender, that’s fine too. Since your refinancing mortgage lender has your files and is aware of your performance, you might get a better deal the second time around.

Preparing for your refinancing mortgage loan

Assess your financial situation: income, gratuities, fixed expenses, insurances, regular monthly bills, and expenses. If you are getting a lower interest rate, let’s say about 7.5% for a $200,000 30-year loan, you will be paying $1,398, which is already $70 less than your present monthly bills.

Get that $70 and save it. By the end of the year, you will have $770 to spend at the end of the year or money for your taxes. But you will be breaking even after 29 months. This is the grunt part of your refinancing mortgage loan.

Will that be a better deal like your friend’s at the other side of the fence? If it is, go for it.

Article Source: http://EzineArticles.com/?expert=Rony_Walker

It is easy for people to breeze through loan applications. Yet the story does not end once the loan has been released; 15 or 30 years of payback time looms ahead, but how ready are you for this reality?

Setting priorities

There are a thousand and one reasons for getting a refinance loan. One is to pay off debts or to relocate to a new house in another state. Many acquire a refinance mortgage to pay for their child’s college education. Whatever the reason, one must pay off the loan or lose their homes and their self-esteem.

Assuming that you have taken the options that guarantee a better deal that suits your need, you will always face a drastic change in your lifestyle. There are items you have to do without because of a reduced budget, hence you have to set your spending priorities straight.

Start at home

A refinance mortgage loan hanging over your head should not deprive you of the finer things in life. Play smart and all’s well that ends well. If you are a family man, involve your wife and children in all efforts to stay within a prescribed budget.

You can go over your monthly bills and find areas where you can reduce expenses – electricity, water, gas, and that daily newspaper. It may seem trivial but if you add up the monthly savings from your cost cutting measures, you will be amazed at the amount of money you will save in a year’s time.

So, check all your water outlets and change your bulbs to a lower wattage. This will lessen your electric bills. Instead of using the car, use a motorbike to go short distances. The less gas money spent, the better for your financial health.

Of course, the budget for food should not be radically slashed. Your health and your family’s should be of prime importance. Check out your usual grocery list and cross out those items that can be substituted for less expensive items.

Instead of cream milk, use skimmed milk; the daily portions of meat should be substituted for more nutritious veggies. You can let go of sweets and other non-essentials and put the money towards your income tax.

Take an extra job

Your partner can pitch in by taking on part-time jobs. That is, if the kids are already old enough to take care of themselves. If the job pays well, hire a part-time baby sitter. That extra income can pay for the little extras like school projects and clothes.

If you have a home computer, look for online jobs you can do at home after work or on weekends. It’s better to have this additional work at home where you can have more time for your family.

Take control of your life

A refinance mortgage loan should not deprive you of your life. Have fun without the expense. You don’t need to go on a cruise to have a great time. A day at the beach or family outings and get-togethers are inexpensive fun.

Managing your finances well will pay dividends in the long run. If you happen to get a bundle, advance it to your loan payment. Try to shorten the loan term if possible.

Check out your insurance policies. There might be payment protection policies that you can avail for payment of emergency loans or your refinance mortgage loan.

Article Source: http://EzineArticles.com/?expert=Rony_Walker