Chapter 49 ★47 redeem your collateral

If you're living in your dream house, you probably paid for it with a mortgage!You may have thought about foreclosing your mortgage earlier in stages, or paying off your debt all at once. For several years, I had put my house as collateral in order to save on home taxes on my own home.In fact, you have to decide according to your own situation, and it is best to ask an accountant to do it for you.However, after a few years, no great benefits have been obtained at all.In addition, many people have also begun to understand that owning their own house outright is more important than saving taxes.

Here are a few ways that can help you get your mortgage back: ⑴ Turning zero into payment for land preparation.If, in addition to your regular income, you regularly have large cash incomes, you may wish to consider using them to redeem your mortgage.You need to make sure that your creditor can accept such a large payment to ensure that your future monthly installments can be reduced. ⑵ Pay additional principal.You can seriously consider reducing your loan period so that you can pay a little more principal when you pay the monthly installment, which can save you thousands of dollars in debt expenses.You must get the creditor's approval and keep an amortization plan.If your principal interest rate changes, you can ask the creditor to deduct interest on the principal with the next month's interest rate.

⑶Since someone started to use the method of accumulating the principal after each payment, this method has made many people overwhelmed.If you also encounter the same situation, you can plan the monthly repayment amount according to your ability.At this point, you still want to keep some basic cash on hand to cover the interest payments.You'd better be able to pay off your debts early and not look for other ways. ⑷ Sell your house and move to a smaller house.Evaluate the house price of the original big house and the real estate value in the local area, and then find out the most suitable area and house for you to move into.It is possible that you can pay for all the expenses of the small house with the money from the sale of the big house.At least you can reduce many loans.

Any plan to redeem collateral must be based on the fact that you have no additional liabilities, such as credit cards, installments for other items, etc.And, you can keep enough living funds to cover emergencies and investment needs.Redeeming your mortgage earlier may not make your life easier in the short term, but at least you can avoid the huge psychological pressure of paying the loan every month.