Are There Disadvantages to Paying off your Home Loan Early?

Paying off your home loan sooner than necessary may seem like a great idea if you have the chance to do it.  But it isn’t that straightforward; you need to put a lot of thought in to the financial advantages and disadvantages of paying off the loan.

If you have the money available to pay off your home loan early before you take any action you should take a look at some of the possible outcomes of doing so (read more at NPBS)

Early repayment penalties and what they can mean for you

Some home loans contain clauses which mean that you’ll have to pay a penalty if you pay them off early.  This is particularly common with loans that offer initial benefits such as fixed rates; lenders want to make sure that they tie you into the loan for the rest of the lending period after the initial beneficial repayment time.

If you think that there is any potential of you paying off your home loan early you need to make sure that you check the conditions of the loan very carefully before you sign.  It’s certainly possible to get a home loan where you won’t be subject to any early repayment penalties, and you don’t have to pay a fortune to get one.

How much is the early repayment penalty?

Penalties for repayment vary but can generally equate to about one of two months’ worth of interest payments.  You will pay more if you repay the loan earlier in the repayment period than later as the amount of interest included in your monthly payments will be higher.  This can end up costing you a lot of money.

What other problems could you encounter?

If you spend all the spare cash you have paying off your home loan then you may find your lifestyle choices limited.  Yes, you will have real estate of some value but it may be difficult to release any of that value should you need to; this is especially the case as you get older.  It may be better for you to keep savings back in reserve.

What alternatives are there to paying off your home loan?

If you take the opportunity to invest your money then not only will you have access to cash if you need it, you will also stand the chance of saving enough to pay off the whole loan in cash at some point.  You need to look at your interest rates, those which lead to you paying interest on your mortgage, and those which lead to you gaining interest on investments.  You can then decide what would be most beneficial to you.

Another option, if you have cash to spare, is to pay off high interest debt such as credit cards.  This will save you more money in the long run and will be more beneficial financially.  If, after you have paid these debts, you still have the financial resources, you can then make extra payments against your home loan.

Tips for gambling responsibly

Everybody can enjoy a good casino game as the excitement that winning a bet can bring its fantastic, as well as the fact that when you win at a real online casino you get your money back plus whatever the multiplier was. This can lead many people into gambling for fun after a hard days work but also for some people gambling too much and making them feel guilty about it. The fact is the gambling can be addictive and so takes some self-control and foresight in order to prevent this from happening. However once you look into how to gamble responsibly you can then gamble without worry or care as it will just turn into an enjoyable hobby.

In order to do this what you have to do is work out your budget so that you know how much excess money you have each month, then out of this number would How much you are willing to spend at an online casino. Remember the games may have funny names like curry in a hurry, but they are still for real money. This amount you decide on will then become your limit and so you will not just putting in money to the casino whenever you feel like it but instead you keep track and know how much you are willing to spend. With this limit in mind you will also play more conservatively and so the money will actually last longer than if you did not have a limit. Also you will only bet on things that you think you can win and so might actually see an improvement in how much money you win.

With this limit in mind you should also look into online casino reviews so as to find the best website for you, these online casino review websites often mention the different games also available as well as how trustworthy the actual site is when it comes to your money. There is no point putting money into a website that you do not trust as you will always feel worried about being able to get the money out that you win.

The financial side of keeping pets

In 2013 13 million (45%) of households keep pets. That is a total pet population of nearly 71 million; 24.5 million if you exclude fish. The most popular pets in the UK are fish, most in tanks but followed in second place by those kept in ponds. They are followed by dogs, cats, rabbits, caged birds, domestic fowl (chickens etc), guinea pigs, hamsters and in tenth place, horses and ponies.

If you’re considering keeping pets, (we’ll exclude keeping horses), your most expensive outlay will be housing them, and in most cases, this is fairly cheap. Insuring them is a must, as vets’ bills can really hurt your wallet, but if there is an emergency, you can always use the option of a short term loan from the likes of wonga.com, or your regular bricks and mortar bank if you don’t mind a slower turn-around time.

Although fish are very cheap to keep, the initial outlay of a tank or pond can be expensive. Tanks are normally available second-hand from eBay, Freecyle or your local Facebook group. They need little maintenance either; cleaning monthly, feeding every-other day and removing the occasional dead fish. Although they are delightful to watch and can be a great hobby if you’re intending to breed them, they’re don’t offer much in the way of petting.

The first pet for a child is very often a rabbit, hamster or guinea pig. Again, they are economical to keep and can be a valuable tool for teaching children about the life-cycle. A small hutch or tank cleaned regularly, and some animal-specific food with the odd treat or fresh vegetable peelings are all they need, with some toys to keep them entertained.

Cats and dogs can be as expensive as you want; a pure-bred animal can cost hundreds of pounds but make use of the rescue centres; they only ask for a small charitable donation and you’re giving a homeless animal a family they deserve. You don’t need expensive bedding; an old blanket is all they require, and toys (as long as they are safe) can be an old child’s toy or a stuffed pair of tights! The introduction of a cat or dog can be of enormous benefit. They can be a friend to a child, company for an elderly relative and with a larger dog, a way to keep you fit with the long walks they require!

Caged birds like budgies or parrots can again be great company, and you could even teach them to talk. A decent sized cage with toys to stop boredom is your initial outlay, but food is cheap and bedding is simple.

Keeping fowl can be enchanting; until you do, you won’t understand quite how distinctive their personalities’ can be. Installing a good sized shed for protection, warmth and a place to lay eggs is an absolute must, and they also need a good area to roam around in and peck for grubs and vegetation. This can be expensive; some chicken houses run into hundreds of pounds. Again, check one of the second-hand sites. Once you have this, food and bedding is very cheap. Layers pellets, a little corn and vegetable waste for treats keep them well fed and some straw to keep them warm do little harm to your wallet.