The end of December is a popular time for people to plan out how they’ll live differently in the New Year, and it could be anything from eating better to buying a nicer car. If you’re a homeowner, or would like to be one in the near future, there are a couple of things you might want to handle differently in the New Year. Here are a few examples:
Make Extra Mortgage Payments
By making extra mortgage payments, you’ll be able to dramatically shorten the time until your mortgage is paid in full. The more payments you make in a shorter period of time, the less you’ll end up paying in the long term, and the faster you’ll get rid of your mortgage. Putting aside a couple of dollars every week and plugging it into your mortgage will go a long way.
Score Homeowner’s Insurance Discounts
Believe it or not, making major repairs or improvements to your home can get you a discount or lower quote on this coming year’s coverage for homeowner’s insurance. A sturdy roof can keep wind out, updated plumbing reduces the likelihood of leaky or bursting pipes, and an updated electrical system is less likely to malfunction and lead to a fire. Making functional improvements in your home can make a substantial impact on your homeowner’s insurance, so call your agent or carrier and make sure your file is current with the latest information about your home.
Pay Off Your Second Mortgage
While it might not always be easy to pay off a second mortgage, the freedom that comes from doing so is well worth the effort. If your second loan has a variable rate, meaning that it could rise in the future, you’ll secure your financial future to a great degree by paying it off by avoiding painful payment hikes that can come down the road.
Refinance Your Mortgage
Refinancing your mortgage, while it can be a difficult task to accomplish, can be tremendously rewarding from emotional and financial standpoints. Making your variable mortgage fixed (even if you end up with a higher payment), as an example, will pay substantial financial dividends down the road. It’s quite likely that the first bank you approach will say no, however, so don’t give up because of an early rejection.
Fight Your Property Tax Assessment
If your house has declined in value since you bought it, you might be able to contest your property tax assessment. Theoretically, if your home drops 40% in value, your property taxes should drop by 40% as well. Most property tax assessors’ websites have useful information for homeowners about assessment dates and appeals, so do your research first.
Source: Bankrate