Making Your Mortgage Payments

There will be many choices for you to make when buying your new home. Some will seem silly and insignificant, others much more important. One of the smaller details you will encounter with your lender is the question of scheduling mortgage payments.

There is of course the standard payment due on the 1^st or 15^th. That’s easy enough. But now, in the technological age, any payment plan you choose will typically come with the option of "automatic withdrawal" where the payment comes directly out of the account of your choosing. Great for the mortgage company – they’re almost assured you’ll be paying on time every month. And good for you, you’ll save on paper and stamps (and you’ll never have to taste those nasty envelopes again).

Just make sure you (and the bank) have good tracking systems in place so there aren’t any overdrafts, etc. due to miscommunication. Then if you have an ARM (Adjustable Rate Mortgage) or Option ARM, you will need to specify the details of the withdrawal to insure amounts are appropriate for your situation, although these mortgage-products are fast becoming a thing of the past.

Don’t forget you can also make special-requests too. Many lenders are very flexible in collecting money when it works for you. Perhaps you get paid on the 12^th every month – many lenders can set up a payment that’s due on the 18^th to give you time to deposit and mail the mortgage amount. Ask your bank, credit union or mortgage broker what they have available – you may be surprised at the options out there!