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Having a problem with budgeting my mortgage payment?
By: Phil Holliday Realtor
Preferred Real Estate Brokers
You just made one of the biggest financial decisions of your life, you purchased your Perfect Home. Did you make the right choice or did you overextend your financial budget. "Why am I now struggling to make ends meet and make my monthly payments".
Orlando, Florida-August 10th, 2023 – Let's talk about the do and the don'ts of buying a home. One of the biggest problems when purchasing a home while financing it is the adjustments you must make with budgeting your payments. You might be saying "I had no problem paying my rent, why should I have a problem paying a mortgage".
Unless a substantial down payment is made, the new mortgage payment will probably be a couple of hundred dollars more. That couple of hundred dollars causes a shift in a budget and can causes payments to be deferred that used to be paid at the beginning of the month to the next paycheck. That might cause some payments to incur late charges.
There is a solution to this with some preemptive planning. When financing a home, the lender normally sets up payments to start the following month. Don't think that it is a free month without having to pay the mortgage but really this is a time to consider readjusting your budget. All those payments that are due on the first of the month can now be set up for more convenient times so to be ahead of your payments. There is nothing worse than working a couple of weeks and then the bills suck up all the paycheck, leaving nothing for food, gas, any entertainment, savings, and any other unforeseen expenses.
There is also a better way to set up mortgage payments, where the full amount at the beginning of the month doesn't have to be paid, by setting up bi-weekly payments on the 1st and the 15th of every month. This not only pays down the mortgage quicker, but it just simply eases the pain of making that one-time payment at the beginning of the month.
So don't fall into the trap of thinking there is a free month at the beginning of your mortgage, use it wisely and plan. Avoid the stress of having to come up with a whole paycheck to pay off the bills.
Stay disciplined and balance monthly payments. That brand new sofa and love seat can wait until there is a balanced budget and expenses each month.
Stay within a workable comfort zone and don't overextend the budget.
Talk to a lender and set up a bi-weekly payment plan.
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