Though making mortgage payments bi-weekly is a great idea that will save you money in the long run, you should not pay a fee for making bi-weekly payments. You will get the same benefit’s of a bi-weekly mortgage by making an extra payment every year. You can do this in one lump sum. Or you can take the amount of your monthly payment, divide it by 12 and then add that amount to your regular payment every month. You will pay off your mortgage sooner and pay less interest over the life of the loan.

One way to save money on your mortgage is to improve your credit scores. Your credit score directly effects your mortgage payment. Most people have errors on their credit report that lower their fico score. Be sure to ask your preferred mortgage professional if your credit scores can be easily improved and how much you can save.

Easiest option to save money on your mortgage is to refinance your home. Many times you can qualify for a better rate, or a different home loan program with a lower rate that will help free up some money with your monthly mortgage payment. Refinancing can not only lower your payment and save you money but many times consolidate debt, get some extra cash out and usually give you a month or two without a monthly mortgage payment.

Your mortgage is probably the single largest payment that you are responsible for paying each month. If you are currently struggling to make your mortgage payment every month, there are things that you can do to lower your payments.

It is critical when fixing errors in credit reports to first contact your loan officer and ask that a report be run calculating which items would result in the most improvement to your credit score if they were fixed. Do not pay off or attempt to fix anything before discussing the strategy with the loan officer and credit specialist, as paying for things like old collection accounts or contesting old accounts can actually reduce your fico score in the short run, jeopardizing your loan approval and potentially increasing your costs and monthly mortgage payments for your new program. Fix only the items specified in the strategy developed by the credit specialist and discussed with your loan officer, and your scores will increase, you will qualify for the program, and enjoy lower payments.

You may also want to ask you mortgage broker if they have a mortgage only program. Even though you may have below 500 credit scores, with a good mortgage payment history you may be able to refinance and pay off some of the negative debt on your credit report.

Sometimes bad things happen to good people in unfortunate circumstances such as medical situations and family emergencies. During these tough times it’s not uncommon to have some bills go unpaid and possibly even missed mortgage payments. These events can have devastating effects on their credit profile as well and some people find themselves in a position where their credit scores have fallen below the 500 mark. Individuals who have a fico score below 500 will find that most mortgage companies are unable to help them. But there is hope. Hard money lenders often base their lending decisions on the equity contained within the property versus the individuals credit scores and credit profile. This can be a solution to some situations and it’s important that the applicant explore all possibilities before making a final decision.

If you decide to refinance into a loan that will allow you to pay off your credit cards faster, you will more than likely be able to skip a month of your mortgage payment. Use the money saved from making that payment, and apply it to one of your credit cards. Remember that once the credit cards are paid down or destroyed to not close out the account. This will help your credit score in the long run. The credit bureaus like to see accounts with a zero balance that have been open for a long period of time.

If you have a lower credit score, you may still qualify for competitive rates if you have other factors in your favor. Having reserves, or funds available after closing, can help offset a lower credit score. If you have 4 months or more of mortgage payments reserves in a 401k, money market, or any other account which can be counted as liquid funds you can improve your chances of getting optimal financing terms.

Though making mortgage payments bi-weekly is a great idea that will save you money in the long run, you should not pay a fee for making bi-weekly payments. You will get the same benefit’s of a bi-weekly mortgage by making an extra payment every year. You can do this in one lump sum. Or you can take the amount of your monthly payment, divide it by 12 and then add that amount to your regular payment every month. You will pay off your mortgage sooner and pay less interest over the life of the loan.