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Out of all the assets that you own, a home is probably the most expensive one you will ever have. And considering the high prices of homes these days, it’s understandable that buyers might be a little concerned that they may not be able to keep up with their mortgage payments.
Having said that, homeowners who are struggling to make their monthly mortgage payments can make it easier on themselves by cutting costs in other areas. Learning how to budget effectively will likely enable homeowners to pay their mortgage payments on-time, every time.
Here are a few helpful budget tips that will help you stay on top of your mortgage payments.
Not only is buying a home expensive but so is operating it. Think of all the utilities you need to keep the place comfortable, such as air conditioning and heating, lighting, and so forth. But there are ways to keep these costs down.
It is advisable to be mindful of energy use in order to keep utility bills down to a minimum. Lights, televisions, and other devices requiring electrical power are best to leave off in unoccupied rooms. It is also a good idea to make sure that windows and doors in your Seattle or Denver home are properly sealed so that energy is not wasted.
All too often, coupons that arrive in newspapers or through emails are quickly discarded. Collecting coupons from various sources can give homeowners the chance to save big on groceries, entertainment, and other everyday purchases.
Some of the savviest consumers have been known to spend practically nothing on their purchases by simply staying committed to the art of couponing. It might take some time to go through flyers and newspapers and clipping coupons, but you can really save a bundle at the register when you do it right. And all that money saved can then be applied to your mortgage payments so you never miss a beat.
Credit cards make shopping incredibly convenient. Not only do you not have to carry wads of cash around, but you can also collect rewards points with every purchase.
But having a credit card often creates a false sense of financial security. Many card holders are tempted to charge their credit cards up to their limits only to be burdened with high interest rates and inflated minimum payments. Don’t get caught up in the trap of credit card debt. Instead, credit cards are best to use only in times of emergencies.
If you have any subscriptions or memberships that you are paying, consider canceling them, especially if they’re not being used enough. In this case, the cost may not be justified.
Anything like magazine memberships, online membership sites, or anything else that you pay a subscription for may be canceled, especially if they are automatically deducted from your credit card or bank account. Depending on how many subscriptions or memberships you cancel, you could find yourself saving quite a bit every month that can be put towards paying your mortgage.
Fuel costs, auto repairs, and other expenses associated with driving a vehicle on a frequent basis can make it much harder for homeowners to stay on top of their mortgage payments for their Boise or Portland home. People who have access to adequate public transportation may be able to significantly reduce their commute costs. Car sharing services give people the opportunity to use a car on an as-needed basis and often prove to be a smarter alternative to owning a vehicle.
A great way to help get a leg up on your mortgage is to rent out a part of your home. Whether it’s the basement that you’ve turned into an apartment, a room in your home, or even storage space in your shed, you can easily collect a few hundred extra dollars a month that can help cover your mortgage.
Taking this concept further, you may even want to invest in a duplex or other multi-family housing complex whereby you live in one unit and the other is rented out by a tenant. Similar to renting part of your home, the rent that you collect from the tenant can help pay your mortgage, and in some cases maybe even more than what your current mortgage payments are.
This “house hack” is an especially savvy way for first-time homebuyers to get into the market if they don’t have the proceeds from a sale to get their foot in the door.
It can also be easier to set money aside for mortgage payments if expenses are carefully monitored with a detailed eye. It is best to closely scrutinize receipts, bank statements, and other financial documents for any discrepancies. Keeping track of expenses on a spreadsheet so that all financial information is clearly displayed may be another practical idea.
Smart budgeting practices can help homeowners in Washington or Colorado save the extra money they need to pay their monthly mortgage payments before each due date passes. Contact a local mortgage professional to learn more clever ways to manage money while trying to pay on a mortgage.
If you are looking to apply for a mortgage, we can help. Sammamish Mortgage is a mortgage company serving the Pacific Northwest region including Washington, Idaho, Colorado, and Oregon since 1992. We offer a number of mortgage programs with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.