If so, you’re not alone.
A recent study shows that a majority of Americans now say they are worried about making their mortgage or rent payments.
The good news is that there are ways to get a grip on your monthly payment.
Here are some quick tips that can help you manage your monthly payment and save money:
- Refinance - This is the first thing that usually comes to mind when people want to save money on their mortgage payment. Even with home equity in question, refinancing is not necessarily out of the question. With programs like the FHA streamline, FHA loan holders can refinance without an appraisal. And with mortgage rates as low as they are, there’s never been a better time to refinance. Talk to a Home Loan Expert about your options.
- Make Extra Payments– Did you know that you can slightly change the way you make your mortgage payment (without any kind of special loan program) and save money? Instead of paying your mortgage payment each month, you can split your single, monthly payment into two bi-weekly payments every Friday (or whenever you get paid, if you’re on a bimonthly payment schedule). If you did this for a year, you’d make 26 half-payments (there are 26 two-week periods in one year). Making 26 half-payments means you’ve made 13 full mortgage payments. By splitting your payment in half and paying it every two weeks, you’re actually making an additional payment which will save you interest payments over the life of the loan.You can organize this without paying the half-payments to the bank. Simply open another checking or savings account and deposit your half-payments into it every two weeks. When your monthly mortgage payment is due, make that payment from the new account. At the end of the year there will be enough money in the account to make an additional mortgage payment! Just be sure to apply it to your principal balance.
- Homeowners Insurance – Shopping around for a better deal on homeowners insurance is a great way to save some extra money. But did you know that there’s a benefit to shopping around beyond the lower premium payment? If your mortgage payment includes taxes and insurance, be sure to notify your mortgage company. If your premium is significantly reduced you could request that your escrow be reduced or that you get a refund from your escrow account.
These are just a couple ways of making your monthly payment a little more manageable. The money you’ll save each month or over the life of the loan can be added to your emergency savings account so you’re better prepared for any kind of economic needs that may arise in the future.