Money Saving Mortgage Tips!

Your mortgage is probably the single largest payment that you are responsible for paying each month. If you are currently struggling to make your mortgage payment every month, there are things that you can do to lower your payments.

The easiest option to save money on your mortgage is to refinance your home. Many times you can qualify for a better rate, or a different home loan program with a lower rate that will help free up some money with your monthly mortgage payment. Refinancing can not only lower your payment and save you money but many times consolidate debt, get some extra cash out and usually give you a month or two without a monthly mortgage payment.

One way to save money on your mortgage is to improve your credit scores. Your credit score directly effects your mortgage payment. Most people have errors on their credit report that lower their FICO score. Be sure to ask your preferred mortgage professional if your credit scores can be easily improved and how much you can save.

If you are really stretched with your total monthly payments, you may want to consider an interest-only mortgage. Since you pay only interest, no principal, your monthly payments will be lower. When you have the funds, however, it's wise to make principal payments whenever possible.

You may be able to make a bi-weekly payment plan with your mortgage. This may help you save money in the long term by cutting years off of your mortgage. This may also help you budget your monthly expenses better because most people do not get one monthly pay check, often companies have a bi-weekly pay roll period.

Another tip is round up your payment. Every penny or extra dollar you spend now, will help reduce the amount you owe, and the amount you pay in interest over the course of your loan. If your payment is $978.34 a month. Round it up to $1000.00.

Though making mortgage payments bi-weekly is a great idea that will save you money in the long run, you should not pay a fee for making bi-weekly payments.

You will get the same benefits of a bi-weekly mortgage by making an extra payment every year. You can do this in one lump sum. Or you can take the amount of your monthly payment, divide it by 12 and then add that amount to your regular payment every month.

You will pay off your mortgage sooner and pay less interest over the life of the loan.

Another money saving mortgage tip is to apply any income tax returns you receive to your mortgage principal balance. Combining this tip and bi-weekly payments can dramatically reduce the amount of time it takes to pay off your home mortgage!

If you receive a sizable tax refund annually, you may want to consider applying an extra payment per year to your mortgage. One extra payment per year can payoff a 30 Year Mortgage in just under 23 years.

» DISCLAIMER: The information contained in this article on 'Money Saving Mortgage Tips!' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.