Managing your mortgage is the first step to maintaining a successful and organized household. Whether you are a new homeowner just getting the hang of payments or amount to pay off your house completely, it is imperative to understand how your mortgage works. As the head of my household, mortgage payments and financing fall to me. I’ve learned a few tips on the way, and I’m here to bring them to you, fellow housewives.
- Explore refinancing options. If you can chop a percentage point off the interest rate of your mortgage, you should consider refinancing. His helpful calculator will make your decision easier. Remember: cutting just $50 out of your monthly payment could lead to thousands of dollars of savings.
- Avoid any immediate big purchases. If you’ve just bought a house, you might be itching to decorate. If you seize this opportunity to shop, you might be in big financial trouble when the first round of bills rolls in. Spend slowly, scheduling large expenses over time. You’ll feel more comfortable in your home and with your monthly payments.
- Always retain between three and six months of savings. Calculate the amount of money you spend on bills each month, then multiply by three, four, five, or six. You never know what could happen, and it is better to plan ahead than to risk foreclosure.
- Keep an eye on your adjustable rate. If you have an adjustable rate mortgage loan or have refinanced to incorporate one, keep a close eye on your interest rates. Though the initial rate might be quite low, over a period of time, your rates will start to rise.
- Understand pre-payment strategies. If the idea of having a mortgage scares you, you might be consider prepaying. Paying down a mortgage with a high interest rate is a much better investment than letting interest accumulate in a low interest savings account. However, investing that money in the stock market or a high-interest savings account may be better in the long run.