FINANCIAL WELLNESS

3 min read

Jul 2021

When Paying Your Mortgage Is a Struggle: How to Make Your Mortgage Less of a Stress

WHAT YOU'LL LEARN

Home improvement tips that will help save money

The benefits of monthly budgeting

When to consider refinancing your mortgage

WHAT YOU'LL LEARN

Home improvement tips that will help save money

The benefits of monthly budgeting

When to consider refinancing your mortgage

After closing on and settling down in your new home, a huge weight is undoubtedly lifted off your shoulders. It’ll likely be some time, if ever, before you restart the entire homebuying process again. However, making monthly payments on your mortgage can remain a stressful carry-over. The recurring payment can be intimidating, and figuring out your new budget can take some serious planning.

These days, it seems like everyone’s money is pulled in a million different directions. With bills, retirement savings, and entertainment subscriptions all taking slices out of your financial pie, you could start to see your monthly funds spread fairly thin. When you have too many expenditures, paying your mortgage can become a real struggle.

Check out these cost-cutting suggestions that might save you a few dollars that can be put towards your mortgage.

Some home improvements will save you money in the long run.

Granted, many upgrades you make to your home and its appliances will cost more up front, but the initial charge will be compensated through each item’s longevity. The return on investment will be evident when you can avoid those unforeseen service repair visits and inflated utilities from poorly- functioning appliances.

For example, installing a low-flow showerhead in your bathroom will save you money on your water bill. The average showerhead can pump out as much as five gallons of water per minute. Think about the number of people in your household who shower every day, then contemplate how many times and for how long they hop in for a quick rinse. The amount of water going down the drain can add up quickly, so making an efficient change to your showering habits with a low-flow showerhead could be a healthy choice for your wallet.

Other home improvements that can save you money over time include purchasing a programmable thermostat or tankless water heater. A programmable thermostat gives you control of your home’s temperature setting while you’re away, and a tankless water heater lasts longer and uses less water than a heater with a tank. Although you’ll likely need to pay more at first to install these items, their long-term energy efficiency will cut down your bills significantly.

Making monthly budgets might free-up more money for your mortgage.

By coming up with a budget each month, you’ll always know where your money is going. Weed out the unnecessary old memberships and subscriptions, then reallocate that money to where it matters the most—your home! Planning your finances ahead of time gives you additional control and leads to financial peace of mind. Plus, crafting a monthly budget can halt any financial concerns before they get too out of hand.

Having a budget will also stop you from using funds you don’t have. Everyone makes mistakes, but a budget could be the last line of defense before you end up in a tight space. It will also spotlight where you might be making less-than-ideal decisions with your money. It’s always better to be proactive versus reactive, so be sure to stay on top of your budgeting and spending!

Refinancing your mortgage could help, too.

To refinance your mortgage means to finance your property all over again. Rather than finishing the process with a new home, you’ll be given a new loan that better suits your current situation. Maybe lowering payments or extending the mortgage’s term will be enough to ease your mortgage struggles. However, refinancing may not apply to everyone, so you should speak with your lender to see if refinancing your mortgage makes sense for you.

These are only a few of the ways you can save on your current expenses so you’ll be more successful with your monthly mortgage payments. Although they may be more costly or time-consuming at first, they will be worth the effort when you’re more in control of your finances!