Managing Your Mortgage: How to Plan for Punctual Payment
Many homeowners are struggling to make their monthly mortgage payments on time, but there are ways to alleviate the burden of a mortgage payments. These tips might actually help to pay your mortgage off much sooner than the actual term of the mortgage, but they will surely help you plan and for punctual mortgage payment.
A great way to stay ahead is to get at least a month ahead on payments. Save up enough for a mortgage payment and put it away in the savings. This will give you the money you need if you have an emergency during a month that you need money for other bills. You can also begin to prepay your mortgage. This allows you to put a little money ahead into the payment, so you will not have such a huge expense once a month. This can be done with a little bit of planning and preparation.
Another great way to pay off your mortgage faster is by setting up bi-weekly payments. Most mortgage companies require automatic withdrawals in order for this to occur, but it is a great way to avoid having to worry about your payment each month. All you need to do is sign up for the process to begin. Your mortgage company will automatically withdraw half of the mortgage payment every two weeks. After the calendar year is finished, you will have made an extra payment on your mortgage. This will help you finish your mortgage payment before the originally scheduled finish date.
Apply Your Extra Cash
A third way to pay off your mortgage faster and stay ahead of the game is by using your extra paychecks to pay on the mortgage. Most people that get paid bi-weekly will receive two extra payments each year. Basically, there will be two months of the year that you will receive three paychecks instead of two. Simply apply those extra paychecks to your mortgage and you will pay an extra two mortgage payments each year. This will significantly reduce your mortgage payments. Also make room for extra expenses in your budget. If that money does not get used, apply that towards your mortgage fund.
Use Credit Wisely
The final good strategy to use if you need to make a mortgage payment and you do not have any money in your savings account is to use credit. Consider using a credit card to pay your mortgage, but use your credit cards only when you will have money to pay them back when the payment is due. A payday loan can also be used. A payday advance, like payday advance Dallas TX, may cost you some money in the beginning, but you should be able to pay it off rather quickly with your next paycheck. Plan and use credit wisely.
This article was written by Mike on behalf of Power Finance.