If your mortgage is coming due this year, you may be wondering how much of an impact the higher interest rates will have on your finances.
While it’s true that your new mortgage rate may be higher than what you were paying before, it’s important to remember that there are ways to manage the higher payments and still maintain your overall financial goals.
In this blog, let’s explore some steps you can take to overcome the potential of higher mortgage payments and make sure that you can still afford your mortgage and maintain your lifestyle as best as possible.
Start with the right mindset
Let’s approach the situation with the understanding that this is somewhat of a frustrating time for most mortgage holders with their terms coming due this year. While it’s natural to feel a bit apprehensive about higher payments, remember that you’re not alone in this situation. Many homeowners are facing the same challenge, and there are many resources available to help you manage your mortgage payments. By being proactive, you can take control of your finances and make sure that you can still afford your mortgage while also achieving your other financial goals.
Explore your options
The good news is that there are many options available to help you manage higher mortgage payments. For example, some options could include:
- Increase the amount of money you put towards your mortgage from the higher mortgage payments of the new term. If you can do this while still being on track with your financial goals, this is the most ideal option.
- Blend and extend your existing mortgage term, which can reduce your monthly payments compared to allowing your existing term to run out completely.
- Extend the length of your mortgage term to make your payments more affordable.
- Consider using your equity to help offset the higher payments.
By exploring these options and finding the one that’s right for you, you can take control of your finances and make sure that you can still afford your mortgage.
Create a budget
Creating a budget is an essential step in managing your mortgage payments. By tracking your expenses and income, you can identify areas where you can cut back or increase your income. This can help you free up extra cash to put towards your mortgage payments. Additionally, a budget can help you prioritize your spending and make sure that you’re staying on track with your financial goals.
Our mortgages are about more than just great rates
PenFinancial’s mortgage rates are among the best in the market, but at PenFi you’ll get more than just great rates. You’ll get the help and advice you need to grow your home and build towards your future.
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Focus on the big picture
Don’t forget to ask for advice from a truly local advisor that has your own interests at heart. We always recommend planning ahead and not waiting until things are in a worse situation than they needed to be if a proper plan was in place. While higher mortgage payments may be a challenge in the short-term, it’s important to remember the big picture. Your rate is likely only locked in for 5-years at the most, yet your home may be owned for the majority of your lifetime. So don’t panic. Your home is an important asset and investment, and by managing your mortgage payments, you’re building equity and securing your financial future. By staying focused on your long-term goals and taking proactive steps to manage your mortgage payments, you can ensure that you’re on track to achieve financial stability and success.
While facing higher mortgage payments can be a challenge, it’s important to remember that you’re not alone and that there are many resources available to help you manage your finances. By being proactive, exploring your options, creating a budget, and focusing on the big picture, you can take control of your finances and make sure that you can still afford your mortgage while also achieving your other financial goals.
As always, PenFinancial is here to help, whether your mortgage is already here, or at another bank or Credit Union. Talk to us today, and let’s get started.
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Speak with a PenFinancial advisor today to find out what options are right for you.
