5 Tricks to Paying Off Your Mortgage Faster

With these tricks it’s easier to pay your mortgage faster than you ever thought possible! We’re sharing everything you need to know to get it paid off early.

We all dream of the day when we have officially paid off a mortgage and we officially own our own home.

It may, therefore, be music to your ears to learn there are some handy tricks to help you quickly pay off a mortgage.

1. Overpayments

One of the best ways to quickly pay off a mortgage is by making overpayments each month.

Many people make overpayments to shave years off their mortgage repayments, whilst reducing the amount of interest to pay on a property.

So, not only will you own your home at a much faster rate, but you will save money, too.

If you would like to identify how much money you could save on the property, you can use a loan repayment calculator to identify how many repayments you will be required to make when making overpayments.

2. A 20% Deposit

If a homeowner borrows more than 80% from the lender, they will be required to pay private mortgage insurance.

The insurance is approximately 1-5% of the loan, so can increase the length of your mortgage.

So, if you want to quickly pay off a mortgage and avoid private mortgage insurance, it is recommended to put down a 20% deposit on a property.

If you cannot afford a 20% deposit, it might be worth considering purchasing a lower-priced property.

If you currently own your own home and want to avoid paying private mortgage insurance, it might be worth overpaying on your mortgage to ensure it drops below the 80% line.

However, it is important to note that this is only possible if you have a credit score of 700 or higher.

3. Boost Your Savings

If you want to purchase a property sooner rather than later, you should try to be economical with your finances.

For example, you should aim to reduce your expenditure by purchasing items you need, over the items you want.

Combine the money savings with an increase in earnings, and the house could be officially yours before you know it.

To boost your savings:

  • Ask your boss for a pay raise
  • Monetize a hobby
  • Open a high-interest savings account
  • Skip the daily coffee purchase
  • Pack your own lunch
  • Cut back a cable package
  • Change insurance providers

4. A 15-Year Mortgage

There is a big difference between a 15-year and 30-year mortgage.

While a 15-year mortgage will cost you significantly more than a 30-year mortgage each month, it will also ensure your home will be yours in just over a decade.

Another benefit of a 15-year mortgage is that you will pay less interest on a property, so the house will actually cost you less than the 30-year alternative.

5. One-Off Lump Sum

If you cannot afford to make overpayments each month, you should at least attempt to pay a one-off lump sum when possible.

So, if you suddenly receive an influx of cash, such as a workplace bonus or inheritance, use the money to pay off your mortgage.

The money could ensure your home is yours sooner than expected, even if it is just by a few months.

By actively taking steps to pay off a mortgage, you can guarantee the property will officially be your own at a much faster rate, and you will remove the biggest monthly expense from your outgoings.

Now that you’ve learned these helpful tricks, you’re armed with the information you need to pay your mortgage off faster!

The Taxes Small Businesses Can Expect in 2017

Things have changed in the past few months, and if you’re a small business owner you may be wondering what to expect in 2017. Here’s your tax guide.

Small business owners have a lot to worry about.

It’s difficult having to be your own boss and oversee employees, and also having to worry about finances.

If there’s one thing that’s always on the mind of the average small business owner, it’s taxes.  Taxes can take up a lot of time and money, and if they aren’t done right you could end up with a nasty surprise in a few months.

You may not be a professional accountant, but you can prepare yourself by learning about the latest tax changes that could affect your small business.

There’s a lot of information on tax speaker, but we’re going to start small.

As tax season quickly approaches, make sure you don’t get blindsided by these new changes.

Your deadline may have changed

Remember the good old days when tax day was always April 15th?  Business owners have to file at different times, and this year you may have to file earlier or later than what you’re used to.

If you’re classified as a C-Corporation, you may be able to relax for a bit.

The date for C-Corporation businesses has been pushed back from March 15th to April 15th.

Partnerships and S-Corporations won’t have as much time to file as they’ve had in the past.  The deadline used to be April 15th, but this year the date has been pushed up to March 15th.

Partnership audit rules are going to change

There’s one particular tax change that won’t be in effect until 2018.  But businesses that could be affected by it should know about it now so they can prepare.

Are you in a business partnership?  If so, be prepared to see some changes when you file next year.

As of 2018, partnerships could be liable at the entity level instead of at a partner level in case an audit occurs.  This change can have a considerable impact on how partnership interests are transferred and valued.

This may change how you decide to conduct your business.  Since you know about it now, spend 2017 talking to your business partner about the best way to handle the upcoming changes.

Income tax could be lowered

This is another change that could be happening in the near future that small business owners need to be aware of.

During his campaign, President Trump promised to make major changes in income tax rates for companies of all sizes.

Right now income tax rates can range from anywhere to 15% to 35%. President Trump has vowed to make it 15% for every company regardless of their size.

The research and development tax could be easier to qualify for

If you’ve been looking for a major tax break, you may be able to qualify for one this year.

Businesses that make less than $50 million each year and invest in research can now apply for the Alternative Minimum Tax. Those tax changes can help with payroll taxes and other expenses.

Contact a Tax speaker

All of these changes can be difficult to wrap your head around. Luckily we’re here to help you.  If you want to learn more about what your business should expect this tax season, contact tax speaker to see what they can do for you.

Have You Got A Plan B?

The spontaneity and unpredictability of life are both wonderful and terrifying. The fact that we don’t know what’s around the corner is what makes life so exciting, but surprises aren’t always a good thing. When it comes to your finances, it’s always a good idea to have a plan B. You never know when you may need to call on a rainy day fund. If you don’t have backup plans in place, here are some tips and tricks to help you prepare for the future.

Saving strategies

In an ideal world, we’d all have a savings account that boasted a healthy balance. In reality, many of us find it hard to save because we don’t have a huge amount of money left over at the end of the month. Once you’ve paid the mortgage or your rent, electricity, and water, you may not have much left to put aside. Factor in the cost of commuting, buying food, and bringing up kids or caring for pets, and it may be a struggle to make ends meet. If you do have a little left over each month, set up a savings account, and top it up on a regular basis. If you tend to spend what’s in your account, it’s a good idea to set up a direct debit. This way, you can make sure you’re adding to the total every month. Even if you only save a small amount, at least you’ll have a pot to delve into if something crops up unexpectedly.

There are two main ways to save more money. One is to try and boost your earnings, and the other is to try and reduce the amount you spend. If you already work full-time, it may be difficult for you to increase your salary without spending every hour of the day at work. However, there are possibilities. Some people like to add to their weekly wage with a sideline, and there may be a chance of taking on overtime now and again or switching to shifts that are better-paid. If you can’t physically work more hours in the day, it’s a good idea to have a good look at your spending habits. Could you spend less on your grocery shopping? Are you paying too much for your TV package? Are you missing out on incentives and better deals because you’ve been with the same energy provider for years? Could you spend less on your social life or gifts for friends and family? There are usually lots of ways you can scale back without making major changes to your lifestyle.

Once you’ve got a savings account up and running, resist the temptation to dip into it unless you really need to.

Clearing debts

The majority of people have debts of some kind. Most debts are related to mortgages, but you can also have credit card and store card debts and outstanding payments due to energy companies, phone networks, and local councils. If you’re in debt, getting out of it should be your priority. If you just have a mortgage, and you’re doing fine with the repayments, you don’t have to worry too much. If you have credit cards, make sure you’re paying off your cards as you go. If you keep spending, you’ll be paying more and more interest, and before you know it, you could be in serious trouble. If you find it hard to resist spending, stick to a card with a low credit limit, and set up direct debit payments from your account. If you really can’t control your spending, consider cutting the card up or giving it somebody to look after so that you can only use it in an emergency.

When you have debts, you don’t just have to think about the money you owe. You may also incur penalty charges, and interest fees can boost the figure significantly. If you’re trying to pay off debts, get organised, and sort out what needs paying first, and what’s costing you the most. Look at when payments are due, and work out how much interest you’re paying. Tackle the debts with imminent deadlines, and then move onto the high-interest payments. If you have a credit card, consider making a balance transfer and enjoying a period of 0% interest. This can help you save money on interest charges for a period of time.

If you’ve got to the point where you don’t know what to do, and you’ve got debts coming out of your ears, seek impartial debt management advice. There are various options available, and it’s best to try and get into the black as quickly as possible so that your financial situation won’t affect your future plans. If you fall behind with payments, this can affect your credit rating, and it can also contribute to anxiety and depression. If you have a low credit score, this can make it difficult for you to borrow money if you do need an emergency fund or you want to take out a loan for a business venture or a mortgage for a house. Arrange an appointment with a financial adviser, and explore the options. The sooner you do this, the sooner you can start looking forward and feeling more optimistic about the future.

The importance of insurance

Insurance should form an important part of any individual’s backup plan. Insurance policies offer protection, and they can help you plan for the future. By investing in insurance, you can protect your assets. If you have cover, this could also help to prevent situations when you have to pay out a lot of money from arising. If you have travel insurance, for example, and you fall ill on holiday, your policy will cover the cost of treatment, rather than you having to shell out hundreds, even thousands, for the care you receive. If you haven’t already got insurance for your home and its contents, your car and your health, it’s time to shop around and start comparing policies. If you have children or you’ve taken out loans, or you own a home, it’s also incredibly beneficial to have life insurance. Life insurance will help to cover the cost of outstanding debts and provide financial stability for your family if the worst happens. When you start looking for life insurance, you may find that you come across a host of different providers, policies, and prices, and this can make narrowing down the options difficult. If you need advice, or you’re not sure which plan is best for you, seek advice from a financial expert.

If you’re self-employed, it’s particularly important to have a plan B, just in case you develop an illness, or you’re involved in an accident, which results in you being unable to work. If you are an employee, the company you work for will often offer sick pay. With self-employment, this is not an option, but you can take out insurance to cover lost earnings.

When it comes to taking charge of your finances, it’s essential to have backup plans. We never know what’s coming around the corner, and it’s good to have peace of mind that you’ll be able to stay afloat no matter how many icebergs you encounter. Think about setting up a savings account and putting money into an emergency fund. If you have debts, try and clear them as quickly as possible or seek advice if you’re not sure which way to turn. If you don’t already have insurance policies, look into taking them out as a priority. It’s always useful to look and plan ahead.