When groceries, utilities, insurance and everyday expenses all cost more, finding room in the monthly budget can feel harder than ever.
The usual advice is to spend less. But before cutting another expense, there may be another place worth looking: your mortgage.
A mortgage is typically one of a household’s largest monthly expenses, yet many homeowners rarely revisit it after closing. As your finances, home value and loan balance change, your mortgage options can change, too.
Here are a few ways your mortgage could potentially work better for you.
A seller or builder paid temporary buydown may reduce the amount you pay during the first few years of your mortgage, while discount points may lower your rate for as long as you keep the current loan. Meanwhile, seller concessions could help cover either option or other eligible costs, depending on your loan program and purchase agreement.
The right choice comes down to what would help you most: a lower payment at first, potential savings over time or less cash due at closing.
See If You’re Still Paying for Mortgage Insurance
If you purchased your home with less than 20% down, private mortgage insurance (PMI) may have helped make homeownership possible. But if you’ve built significant equity since then, it may be worth finding out whether you still need it.
Depending on your current loan and financial situation, you may be able to request cancellation of PMI or explore refinancing into a new loan without mortgage insurance.
Removing mortgage insurance could lower your monthly housing expense and put more room back into your budget.
Keep in mind that refinancing comes with closing costs and potentially a different interest rate, so it’s important to look at the full financial picture before deciding whether it makes sense.
Make Your Mortgage Payment Easier to Manage
Sometimes the challenge isn’t the total mortgage payment. It’s having one large payment leave your account at once.
If you’re paid every two weeks, a biweekly payment strategy may make budgeting feel more manageable. Instead of setting aside your entire mortgage payment at one time, you can plan around smaller amounts throughout the month.
Depending on how the payments are structured, a true biweekly payment plan can also result in the equivalent of one additional monthly payment each year. Over time, that extra principal could help you pay off your mortgage sooner and reduce the total interest paid.
Before making changes, contact your mortgage servicer to understand how payments are accepted, applied and credited to your loan.
Find Out If Your Current Mortgage Still Fits
Connect with your local PrimeLending loan officer for a custom review to find out if your current mortgage still fits.
Put Your Mortgage to Work for Your Budget
When everyday expenses are stretching your budget, saving doesn’t always have to start with giving something up.
Sometimes it starts with taking a closer look at one of your biggest expenses.
Could your mortgage be working harder for you?
We can help you review your current mortgage, explore your options and understand whether making a change could benefit you. Request a complimentary Annual Mortgage Review today.
