How to Manage a Monthly Mortgage Payment

Saturday, April 7, 2018, 6:00 AM | Leave Comment

Owning a home means that there are a lot of expenses associated with it.

The monthly mortgage payment is only a portion of the costs.

Here are some tips to help you manage your monthly payments.

How to Manage a Monthly Mortgage Payment

  • Do a Practice Run

    Before you decide to purchase a home, practice saving money each month. Depending on the home that you want, your expenses can vary.

    If you’ve never owned a home before, there are other expenses that you need to take into consideration.

    You’ll have to pay all of your own utility bills. This may not have been the case if you were living in an apartment.

    There will also be insurance and property taxes to factor into the equation.

    The mortgage payment may be the largest expense, but all these little expenses start to add up.

  • Shop for the Right Loan

    Find a mortgage loan that works for you. There is a lot to consider when you’re applying for a loan.

    The interest rate, the terms, your down payment amount, and any points that may be associated with the loan.

    Shop around so that you can get the best deal. Your home is an investment, but you need to factor in how much it will cost you over the life of the loan.

    Some mortgage loans are managed by lenders that will require a higher down payment for you to qualify for the loan. However, there are still programs that will help you with the down payment on your first home.

  • Watch Your Bottom Line

    Always pay your mortgage on time and in full. This will prevent you from having to enter the foreclosure process.

    Make sure to limit the amount of expenditures that you have that aren’t necessary. Create a budget so that you can see where your money is going each month. It may be tempting to make a bunch of large purchases for your new home.

    Keep your eye on the prize. This means that you need to hold off making all of your purchases at once. Space things out until you have a better handle on your new financial situation.

  • Open a Savings Account

    Having a savings account can give you a much needed buffer when it comes to home expenses. Save up for renovations and other large purchases. Your first priority should be to your home.

    Owning a home sometimes means that there are unexpected repairs that need to happen. With a savings account, you can make these repairs and not worry about how you’re going to pay your mortgage this month.

Be aware of your financial situation before you decide to make a move on a home purchase. A mortgage should never exceed 30% of your total income.

Author BIO

Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.

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