Worried About Your Mortage? Here’s How to Better Manage Your Monthly Payments
Worry No More
If you’ve spent time worrying about how to manage your monthly mortgage payments, you are not alone. In fact, recent studies have indicated that many Americans worry about making their mortgage payments each month. The following useful tips can help you manage your payments and save you money each month.
Refinancing Your Mortgage
Refinancing usually is the first thing that comes to mind when people find their monthly payments to be unmanageable. Even if your home equity is in question, you may still be able to refinance your home and achieve a better payment plan. Programs like the FHA Streamline allow FHA loan holders to refinance their homes even without an appraisal.
Increase Payment Frequency
Many homeowners choose to change their mortgage payment frequency in order to save money. Instead of paying your mortgage in a single payment each month, split the sum into two bi-weekly payments each Friday. If you do this for a year, you’ll have made 26 mortgage payments, which equates to 13 full mortgage payments. With this extra month’s mortgage payment, you’ll save on interest over the long term.
Explore Insurance Options
Finding a better deal on homeowners’ insurance is an excellent way to save money each month. If your monthly mortgage payment includes insurance, notify the mortgage company if you’ve found less expensive insurance. They may be able to reduce your escrow, or you could receive a refund from your escrow account.
Pay Off Your Mortgage Early
The easiest way to manage your mortgage payments is to not have one at all. Start doing a little mortgage planning with online mortgage calculators, and see how adding a little more to your payment each month will affect your principal. If you’re able to budget a little more money to your mortgage payment each month, you will shorten the length of your loan and be mortgage-free much sooner.
With these tips, you can make your monthly mortgage payment much more manageable. A smart idea is to apply your monthly savings towards your emergency savings account, so that you’re prepared for whatever life throws your way.