Today's first tip is the option many lenders have of skipping a payment. While this won't save you money, it does provide a full month's worth of mortgage payment in your hand which may not be a bad thing when the credit card bills arrive in January. First and foremost, you need to make sure your lender has some type of program in place which you can find out by contacting them.
You cannot just skip a payment without proper authorization from the bank; they frown on that to put it mildly. Also, this does not mean you never make the payment; it is just appended to the back of the mortgage as one additional payment. If you are already on an accelerated payment program, you may never notice unless this becomes a yearly habit, which is not recommended. When used wisely and responsibly it can be beneficial.
The other useful tip is having your mortgage payment date moved. There is no hard and fast rule about mortgages having to come out on the 1st of the month or the 15th and the 30th if you pay twice a month. If you get paid on the 30th or the 31st, having all your mortgage payment processed on the next day on the 1st it may make life easy. If you juggle several bank accounts though or make monthly transfers to cover mortgage payments at the end of the month, talk to the bank about adjusting the payment date until the 5th, or the 7th, or whatever date works to make your payment process easier and more efficient.
As always, there may be a slight interest payment adjustment to keep the banks from going broke, but if it makes your life easier to pay later take advantage of it. This can also be established when you initially set up the mortgage, you can ask for the payment to be processed on a certain date. For landlords this is an incredible option as it allows you to deposit rent checks without any undue pressure. Especially if you know the mortgage payment doesn't come out for a few days after you deposit it.
The final tidbit I have is for someone selling his or her home. Unless you have an open mortgage without any payout penalties involved, you are liable to get hit with some interest penalties for paying off your mortgage. These penalties as an average work out to approximately three months payments, but fluctuate depending on how close you are to the end of the mortgage term.
You can reduce this penalty by having your lawyer take advantage of making a payment to reduce the mortgage amount prior to paying it off. A typical mortgage allows the homeowner to make either additional monthly payments or a bulk payment once a year and depending on the lender ranges from 5 to 10% of the monthly or yearly payment. If you can have the 10% paid down first, prior to paying out the mortgage, you reduce the outstanding mortgage amount. You then pay the penalty on the smaller amount of remaining mortgage saving anywhere from a few dollars to several hundred.
Buried amongst the last three weeks of mortgage information I hope there have been some bits that help you stay informed and allow you to make good decisions about your current mortgage, or your upcoming one. As always, consult with a mortgage broker for the best sources of information and be sure to go in as knowledgeable as you can.
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