6 Budgeting Tips to Help Make Your Mortgage Payments Easier

September 17, 2015
Last updated:
December 6, 2021
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Make Mortgage Payments Easier

Summary: Looking to make your mortgage payments easier on your pocketbook? Here are some tips you may want to adopt to make budgeting for your mortgage simpler.

Buying a new home is an exciting time, but excitement can easily turn to stress if there isn’t enough money to pay the monthly mortgage bill. The added expense can take some time to get used to, but there are ways to make the payments easier, especially in those first few months when money is the tightest.

Prioritize The Mortgage Bill And Pay It Immediately

This may seem like a counterintuitive tip for anybody looking for help making mortgage payments, but it is easily the best one and the one that provides the most trouble for homeowners.

Late mortgage payments come with hefty fees that make it harder and harder to pay the next mortgage bill in full and on time. It’s a slippery slope that can end in foreclosure if the mortgage bills go unpaid for too long.

Don’t Get Carried Away With Household Spending

What’s the first thing most couples do after finally purchasing their first home? If they moved in from a smaller apartment then filling in the empty space will probably be at the top of their list.

Spending sprees are all too common after moving into a new home. There are extra rooms that need to be furnished and extra space that needs to be filled in with a larger television or another sofa.

These purchases will severely limit the mortgage budget and could lead to late payments right from the start for anybody who gets carried away. Put a budget in place for new furniture and stick to it so that there is always money for the mortgage.

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Limit Spending In The First Few Months

The biggest change for anybody moving into a new home is the extra expenses they aren’t used to paying. Water, power, heat, air conditioning, internet and cable are all things that could be included when renting and once those bills start coming in it can be alarming.

It doesn’t matter how careful they are, budgeting can take a huge hit if new homeowners are expecting to pay the same as they were in their previous home. Always wait for the first few months before making any purchases to get used to the new monthly bills that will be waiting.

Making mortgage payments starts with getting a mortgage you can actually afford. Make sure you consult with a professional who will be able to help you find the best deal and get a mortgage that won’t break the bank each month.

Don’t Apply For New Credit Unless Necessary

If you’re trying to save money to make your mortgage payments every month, the last thing you want to do is add more debt to the pile. If it’s not absolutely necessary, resist the temptation to apply for new loans or credit. Not only will you be adding to the debt pile – which will make it more difficult to pay your mortgage every month – you’ll also be negatively impacting your credit score.

Too much debt can pull your credit score down, so if you ever need to refinance your mortgage or take out another loan of some sort, a lower credit score could make it more difficult to get approved. But when it comes to budgeting for a mortgage, keeping your debt loads as low as possible can help ensure that more money is leftover for your mortgage payments.

Choose a Budgeting Strategy

There isn’t just one way to budget for a mortgage, so it’s helpful to get familiar with each tactic and adopt one that’s best suited for you. For instance, you may choose to regularly assess and keep tabs on all of your expenses manually on a daily basis. Others who are more digitally savvy make use of budgeting apps that make budgeting as easy as possible.

There’s also the 50/30/20 budget plan that’s simple to follow and can help you reach your financial goals. With this rule, your after-tax take-home pay is classified into three categories. Fifty-percent of your budget goes towards must-haves, such as food, shelter, clothing, and utilities.

The next 20% of your budget goes towards your savings and making extra payments on your debt, including 401(k) contributions. The last 30% is free to be used for entertainment or maintaining certain lifestyle choices that aren’t really needed to get by. It includes things such as going out for dinner, vacations, gym memberships, hobbies, and so on.

This is just one strategy that you may want to adopt. Of course, there are others, so you will want to find one that works best for you.

Automate Your Savings

Ideally, you will want to put away a certain amount of money every month that will be used to be put towards your mortgage payments. You can do this manually by physically setting aside a specific amount into an account that is dedicated to savings. But if you’re not as disciplined as you need to be to adopt this method, you may choose to automate your savings instead.

An easy way to do this is to have your banking facility automatically deposit a certain amount or percentage of your pay into a savings account that is dedicated specifically to paying your mortgage. That way you won’t have to remember to do it yourself since it’s all done for you behind the scenes.

There are many things you can do to make mortgage payments easier for you. Consider adopting any one – or all – of the above tips to help streamline your mortgage payments.

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Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.

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