Check out these ways to keep major household cost down

| November 30, 2013

household cost

For many Americans, a monthly mortgage payment usually accounts for around 40% to 50% of their monthly income. This is quite a high percentage, and if you end up getting laid off from your job, for example, you could really struggle to meet those mortgage repayments – and possibly lose your home in the process.

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This is not something that anyone wants to happen, especially if you are new to the housing market and have just bought your first home. So to lessen those potential mortgage worries, here are some savvy ways to cut your expenses down – and even save money on your mortgage itself in the process!

Bigger down payments mean smaller mortgage repayments

If you haven’t already bought your home yet, then you should think about whether you can commit to putting a bigger down payment against your home loan. The reason for this is simple: if you borrow less money, then you pay less money back in the form of mortgage repayments!

Some people are lucky enough to be receiving a sizable tax refund or perhaps a financial windfall of some description, so if you are one of those lucky people then you should not buy a home until you have the extra money, and use most or all of it towards buying your new home.

Putting a bigger down payment against your mortgage will also mean that you can benefit from lower interest rates, which will drive down the cost of your mortgage even more!

Shop around for the best deals

Regardless of whether you are about to buy a home, or you already have one and are looking to remortgage your home, you should shop around for the best interest rates and deals.

For example, if you lived in Maryland, you could contact one of the many licensed mortgage brokers in Maryland to help you find the best deal suitable for your needs.

People that have high credit scores usually get the choice of some of the best mortgage offers on the market, so if your credit score is not very favorable then this can work against you. In such cases, you should address why your credit score is bad before you attempt to apply for any more finance, such as a mortgage.

Cancel your PMI (Private Mortgage Insurance)

Do you have an existing mortgage, and the balance of your mortgage is less than 80% of the home’s value it was appraised at when you first bought it?

If that is the case, then you should consider cancelling your PMI policy, as this will save you a few extra bucks each month.

Get rid of any unnecessary expenses

Many householders find that they pay out money each month for unnecessary expenses. You should go through your monthly household bills to find out what you can get rid of in order to save extra money each month.

And for insurance policies such as home or auto insurance, you should shop around to see if you can get a better deal elsewhere.

Category: Save Money

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