4 Tips to Save Money on Your Home Loan

Calculator and MoneyThe following article is a guest post. Please see my disclosure statement.

Getting a home loan can be expensive. Understandably, though, it is the best investment that a person can ever have, so sure it doesn’t come easy. But there are ways to make home loans more accessible and cost-effective to the working professionals and real estate investors. How is that even possible? Read on.

1. Consider getting a special packaged mortgage
Getting the right type of mortgage in the beginning can save you money and time. You should get a special packaged mortgage if you like the idea of;

Taking out at least $250,000 home loan
Using multiple credit cards
Having a variable rate home loan
Fixing your loan in the near future; or part variable, part fixed
Bundling your several loans all together

This home loan package attracts many potential customers for its money-saving benefits. It can reduce a substantial amount of money in interest off of your mortgage and it may come with affordable annual fees. Thus, if used correctly, you will be able to pay your loan at a shorter period of time.

2. Combine all of your active loans into a single package
This can be done by linking up your variable rate home loans to a 100-percent offset account. If you are a working professional, you might want to have your employer transfer a portion of your salary to a bank account that is linked to your home loan. As soon as the account receives money to keep the maintaining balance at bay, it may also reduce the payable interest on your loans in no time. For example, a $10,000 maintaining balance throughout the life of your home loan could give you approximately $47,000 savings off of 7.22% p.a. interest rate over a 25-year loan term.

3. Ask your lender about any available discounts
Yes, it is possible get discounts on home loan products and interest rates. For instance, in special packaged mortgages, the lender may charge you with an annual fee of up to $400. In return, you will be entitled to receive a friendly discount on the interest rate and on some other services like insurance products, check accounts, credit cards, and personal loans. The amount of discount largely depends on the size of all your loans, especially if the total is equal to a minimum of $250,000. And even if you have multiple loans in the package, you will only have to pay for a single annual fee.

4. Use your credit card(s)
When you’re under a special packaged mortgage, it is advisable to make use of your credit card(s) when purchasing items. No, really it works. You should use your credit card on every purchase you make rather than withdrawing funds from your account. And then, when the bill is due, use your linked (offset) account to pay for it on-time so as to avoid paying for the interest on your credit card bill. Add the fact that some credit card facilities offer a reward program, so you should be able to earn enough points to reimburse some items or earn discounts.

Indeed, there are cost-effective ways to go beyond a typical home loan. You can combine different loan products all together to avail of discounts on the interest rate throughout the life of the loan. As a result, you will earn enough savings to shorten your payment term. Just make sure to discuss with your lender about the features and discounts attached to a home loan product so you will be able to know if it is exactly what you’re looking for.

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Inexpensive Father’s Day Gift Ideas

Father's day cupcake

Father’s day cupcake

Everyone knows that Dad deserves a special day to say thanks for all of the loving things he does for his family everyday. But, after working so hard to improve your finances, you don’t want to get too carried away purchasing a Father’s Day gift and ruin all of your hard work. Fortunately, there are plenty of things you can do to show your appreciation for Dad on a budget and don’t forget that a homemade gift is always a budget friendly option.

Give Dad a day or two without chores.
You can take out the trash, mow the lawn, and perform a myriad of other little chores that he usually takes care of. He’ll be thrilled to have an afternoon to spend on his projects instead of looking after the mundane little tasks that seem to eat up the weekend. I usually give Mr. Not Made of Money a large block of time (2 to 3 hours) where he can just read the paper and relax. (I know that seems like such a simple thing but when you have 4 children clamoring for your attention you really don’t get to read the Sunday paper from front to back. If you are a parent you know what I am talking about :))

Treat Dad to a baseball game.
You can sit in the “cheap seats” to save money. It won’t matter; you’ll still have a great time. Baseball games are a fun way to spend an afternoon or evening for the whole family.

Spend the day outdoors doing something Dad enjoys.
If he likes hiking, he’ll love sharing his favorite trail with the family. If he’s a fisherman, spend the day at his favorite fishing hole. He’ll get to share his hobby with the people he loves most and spend a little extra time on his hobby, too.

Relinquish control of the television for twenty-four hours.
Dads with little kids often give up their television rights so their kids can watch shows like Dora, Mickey Mouse, or Phineas and Ferb. Imagine how much he’ll enjoy an entire day that he can spend watching whatever his heart desires. Take care to keep your promise as the day continues.

New photos of the family make great Father’s Day presents.
You can purchase inexpensive, but attractive desk frames at your local discount shop. Then, just pop in the new pictures and wrap them up. Now, even when he’s at work, Dad can remember why he’s working so hard. We’ve also made a slideshow of our pictures for Mr. Not Made of Money’s computer.

Does Dad like a particular type or series of book?
If he is into the novels by Jim Butcher, you can purchase the latest book in the series. If you aren’t sure what book to get him, write down the titles of two or three of his favorite books and ask the folks at your local bookstore’s information desk to make a recommendation. You may want to couple this gift with the “day without chores.” Now Dad will have ample time to read his new book.

Send A Gift If You Can’t Be Together.
Cards are always appreciated, but Dad deserves more on a special day like this. Look through the daily deals and coupon sites to save money on sending a gift. Places like Shari’s Berries are always running promotions for holidays like Father’s Day.