Reduce the Impact Your Mortgage Has On Your Life
If you own your home, chances are your mortgage on it is one your biggest expenses. While owning a home is indeed better than renting one, the monthly amortization has a high impact on what you do with your money and how you view your finances.
Citycreekmortgage.com reveals several ways in which you can reduce the financial burden caused by your mortgage.
Refinance Your Mortgage
If you have an FHA-insured loan, you can apply for their streamline refinance program. Doing this will lower your monthly mortgage payments by at least 5 percent. This reduction is guaranteed as it is actually a requirement by the FHA before you can avail of their refinance option. Seek professional help if you are unfamiliar with the ins and outs of the FHA’s system. No matter where you live, be it in Salt Lake City or San Francisco, you’re bound to find firms that can aid you in your mortgage proceedings.
Turn Your House into an Investment
Alternatively, you can also use the extra space of your home as a source of income. If you have a spare bedroom you can lease it out to others. Who you accept as tenants depends on your location. Advertise your room for rent to students, staff, or faculty if you’re near a university. You can also consider leasing the room out to tourists looking for cheap, short-term accommodations — use an online platform to advertise. You could also consider selling the room as storage space if you don’t want strangers in your house. If you have a business you can use the space as a home office. You can use the tax deduction to offset part of the mortgage payments. Make sure you consult a tax professional as it is very easy to cross the line from legally lowering your taxes to tax evasion.
If you can manage to both lower the monthly payments and earn money off of your home then all the better. If your mortgage is covered by the amount you earn from your home, it will be one financial burden off your mind.