Once you have finalized the purchase, you get to move into your home. At this point, you’ve made all the down payments and satisfied the other requirements from your first home mortgage lenders, and you just need to ensure you stay on top of your monthly payments. Check out these tips.
Pay on Time
To avoid late fees, make sure that you pay your first home mortgage on time. Most mortgage lenders are relatively flexible about letting you choose or change your payment date, so make sure you pick a date that works for you. For instance, if you get paid on the fifth of the month, you may want a payment date that falls between the fifth and the tenth. Otherwise, if your payment is due on the first of every month, you may incur a late payment every month which can really add up over time.
Set Up Automatic Payments
Automatic payments can also help you to avoid paying your mortgage late. Most mortgage lenders give you the option of setting up an automatic draft from your bank account, and to simplify your accounting, you may even want to set up the payment for the same day or the day after you get paid.
Save for Repairs
In addition to budgeting for the first home mortgage payment, it’s also wise to budget for repairs. When you’re a homeowner, there are some repairs that simply can’t wait. For instance, if the water heater breaks, a window cracks, or shingles fly off the roof, you may need to pay for a repair immediately. Ideally, you don’t want to use funds from your mortgage payment and get behind. Instead, most mortgage lenders suggest that you put aside some money in a savings account every month. Then, you’re always prepared if something happens.
Make Double Payments
If you want to pay off your mortgage sooner, consider making payments every two weeks rather than once a month. For instance, if your monthly mortgage is $2,000, don’t just submit that amount every month. Instead, send your mortgage lenders $1,000 every two weeks. Then, over the course of a year, you end up paying $26,000 instead of $24,000. Over time, these extra payments add up, and you will end up paying off your mortgage sooner. This schedule really works well for people who get paid every other week.
Know When to Refinance
Eventually, you may want to refinance your mortgage, and luckily, there are a variety of mortgage lenders in Georgia who can help you with a refinance. If your monthly payment is too high, you may want to refinance to get a lower interest rate. Lowering your rate by even a point or two can make a big difference in your payment. Similarly, if you build up equity in your home, you may decide to refinance so that you can spend the equity. Depending on your situation, you can tap into the equity by taking out a separate loan, getting a new mortgage, or using a home equity line of credit.
If you are ready to buy your own home, contact us today. At BrightPath, we are one of the most flexible and trustworthy mortgage lenders in the area, and we look forward to working with you on your first home mortgage.