Question

Does anyone pay their mortgage a month ahead? So, our dilemma is this: Our mortgage is due the 1st but we have until the 15th to pay. My husband’s last paycheck of the month is about $700 less than normal bc insurance comes out. This paycheck is what we would use to take the mortgage out of but since we switched to his insurance, we end up taking it out of the second paycheck which also puts us in a crunch bc we have 2 big loans that come out as well. We always end up covering it but I just feel like there’s got to be a better way to do it. I was thinking of paying our mortgage a month ahead when we get our taxes back so that way we can just designate a certain amount from each paycheck so it’s not quite a large amount coming out at one time. Does that make sense? Seem feasible or helpful to our situation?  

Answer 1

We are kind of in the same situation, so when we got a bit ahead I started breaking it up into 2 payments, I move half to the savings when I get paid on the 10th, then when I get paid on the 25th I take the other half and I move the money back over and make the payment.  

Comments

@algo0 yes! This is so helpful to spread out the “pain” of that larger bill.  

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@algo0 I do this as well. 1/2 of mortgage payment comes out of each paycheck. I actually do that for all of our larger bills because I don’t like depleting an entire check on bills.  

Answer 2

When we owned before we moved we paid a month ahead. Just gave us peace of mind. We also always kept an additional full mortgage amount in savings at all times

Answer 3

I pay half my rent out of each paycheck.  

Answer 4

So, I dont have a mortgage. But I pay rent. My landlord allows me to pay in cash. So, each pay period I set aside half the rent (550) and I give him the envelope with cash. I am already paid one month ahead for February 2020. so, the rest of my Bill's are paid with whatever is left over. and, some weeks I have $100 in my account to last until payday.  

Comments

@singlefoot Pkease pkease ! do your self a favor by paying with a check ! Or get a signed signature receipt ! I payed with cash time . had no problem and then the land lord died. Looked on paper that I never payed rent !  

Answer 5

I pay half of my large bills (mortgage and car) with each paycheck. Hurts a little less

Answer 6

Make sure to talk to your lender first. Sometimes paying ahead or even bi monthly payments look abnormal, so they apply it to the balance if its not in the payment due period

Answer 7

If you pay your mortgage a month ahead, that is considered an extra principal payment and you will STILL owe your usual monthly payment on time. Perhaps it's better to keep your tax money in your checking account as an emergency cushion instead.  

Comments

Depends on the bank and what boxes you check when you pay. We don’t have an income of much in the summer and I often pay three months in advance so we don’t have to make those larger summer payments. Works just fine.  

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@speculative that happened with my school loan. Even though I was sending in the payment coupon with the payment, it did not advance my payment date and went to principle instead. Things with Sallie Mae were all kinds of messed up.  

Answer 8

Can you pay 1/2 from each paycheck to your mortgage?  

Answer 9

I do this. It just gives me a peace of mind. I am a month a head on my car payment as well. I lost my job due to my job downsized in 2013 and totally was glad I had my bills paid a month ahead.  

Answer 10

We don't pay ahead, but I have half of the mortgage deposited into a separate account for each oay period (by weekly pay). This has helped to stay on top of the payments.  

Answer 11

Also consider instead of being a month ahead, applying that extra money to the principal. In one scenario you are a month ahead. in the other your shaving payments off of the life of the mortgage. Do a amortization schedule and play around with it. It is seriously eye opening to see how much money you can save over the life of your mortgage!  

Answer 12

You could go to bi-weekly payments with your mortgage, which may eliminate the issue of two big payments at once.  

Answer 13

Mine is on the 1st too. I have been trying to budget money from my second paycheck to go towards the payment on the first but it has been hard.  

Answer 14

Each paycheck I move a portion of my mortgage into a separate checking account I have just for bills. It becomes out of sight out of mind from my regular checking account and can be paid without stress.  

Answer 15

My coworker said she has a separate account for just her mortgage. We get paid biweekly, and she puts half of her mortgage into that account out of every pay, then makes her payment each month, and at the end of the year she has an extra payment left in the account and she puts that to principal. Sounded like a good idea.  

Answer 16

I move half of my mortgage payment from one paycheck into a savings account, then on the second paycheck I have the other half of the payment and then make my payment. I have it worked out so my payment is made by the first of the month.  

Answer 17

Mortgages do not work like cars. While it is true you can split your payment by paying early, or make additional payments at any time . this payment goes to additional principal not paying you ahead. You will always have to pay each month. Since the bulk of your pay is on another pay period you can consider paying extra to split your payment, effectively setting up bi-weekly payments.  

Answer 18

Take your mortgage and divide it by how many paychecks you get a month. Then save that and pay it on the last check you get so it's paid by the 1st. I do this with our 4 paydays. But when I started I had to catch up I guess you could say. I did this last yr with my return. I had paid it normally on the 10th before the grace period and then again at end of month w my refund from taxes so I could start fresh you could say the next month . Saving from each check and having it by the first. Hope that's not confusing . But YES you are correct

Answer 19

My mortgage also comes out on the first and is my biggest expense for the month. I get paid weekly and I set aside money each week so that I have the full amount waiting in my checking account on the 1st to come out.