Decreasing your mortgage payment...sort of!

Before I made my move to working part time, I was looking for all sorts of ways to cut expenses. One of the ideas I came up with has saved us about $90.00 per month on our mortgage in a round about way. Here is what I did:

• Our monthly mortgage payment is $1,159.


• I took our monthly mortgage payment and multiplied it by 12 (the number of times we have to make the payment each year) or $13,908.


• My husband gets paid every other week, so there are two months during the year that we receives three paychecks instead of two for a total of 26 paychecks per year.


• I took the total yearly payments and divided them by 26 or $535.00.


• Each time my husband gets paid, we have set up with our credit union to transfer $535.00 to our savings account automatically.


• We pay our mortgage payment each month out of this savings account.


• Therefore on a normal month we transfer only $1070.00 to savings for our mortgage payment - or an $89.00 savings each month.
  

Important notes:

• In order to start this plan, you must start on a three paycheck month. The excess funds will remain in your savings account to pay for your subsequent mortgage payments.
• This is also a separate savings account from our other savings so that it is not intermixed with other funds so we don't get confused and we don't spend it.
• Obviously this isn't the way to get my mortgage paid off faster, but this is helping us at this season of our lives.

So that's what works for me - check out Rocks in my Dryer for other great Works for Me scenarios!