An important first step upon closing the purchase of a new home is to plan for paying the monthly mortgage payments. As a new homeowner, you’ll likely encounter several financial responsibilities in the short-term, and so it’s important to begin planning for mortgage payments at the earliest opportunity. In this article, we’ll outline 4 tips for planning for your mortgage payment.
- Consider Setting up Recurring Payments
- Review Responses to Potential Changes to Your Income
- Alert Your Lender When Making Payment Changes
- Discuss Options with Your Lender
If you haven’t done so at closing time, you might consider setting up monthly mortgage payments with your bank. There are many advantages to this approach. It will take away your responsibility in having to remember the payment each month. It will also mean you don’t have to go through the payment process every month, saving you valuable time as you juggle work and family responsibilities.
If your income is fluid and changes from time to time, for example if you own your own business, then you might consider reviewing the impact these changes could have on your mortgage payments. It’s important that you plan ahead for any drop in income. You can do this by simply analyzing your costs and then reviewing which items you would sell or services you would stop using if you had a drop in income.
There may be months when you wish to increase the amount of money you’re paying on your mortgage in order to decrease the principal. This is a great way to quickly pay down your home, but it’s important to alert your lender when taking this approach, as they may place a hold on the account if payments change suddenly. If you get a raise or receive a lump sum payment and you wish to place more money down on your mortgage, speak to your lender first.
Upon completion of the purchase process, if you haven’t already, you should discuss your full range of payment options with your lender to determine how you might respond to a fluctuation in interest rates. You can safeguard your ownership rights by reviewing these options as early as possible after buying the home.
By understanding how to enhance your liquidity and by ensuring you have the resources to weather potential financial issues in future, you can reduce your chances of mortgage payment problems. To discuss this topic with a specialist, contact our team today!