Massage That Mortgage
As a wise man once told me upon purchasing my first home, "Congratulations, you're in debt for the rest of your life."  But that doesn't mean you should let your mortgage run your life.  Here are a few steps to massaging your mortgage to dull the pain of those inevitable monthly payments.

  • Auto-pay account: Many lenders require this, but if yours doesn’t, set up a separate checking account from which to pay your mortgage every month.  This way you can keep your discretionary spending separate from your mortgage money.  Then set up an auto-pay feature so you don't have to write the check.  This does two things: alleviates the difficulty of remembering (or forgetting!) to make your payment, and allows you to focus solely on getting the money into the account.  To make it even easier, consider setting up direct deposit into the account so that no matter what the money is always there.
  • Consider bi-weekly payments: Split your monthly payment in half and then pay that every two weeks.  It will increase the amount you pay per year, but in the long run it can help you pay down your principle faster, which will free you from your mortgage sooner.  This option, however, does not benefit those who don't plan on being in their homes for a longer period of time, according to BankingMyWay.com, which calculates it will help you pay off your mortgage four to six years earlier.
  • Watch the markets: Keeping your eye on the interest rates and special refinancing products.  If the market drops, figure out whether it makes sense to refinance.  Even if you've only been in your home a short time, refinancing could make sense if you can save at least a point on your mortgage, which could save you tens of thousands in the long run.