Same with mortgage payments. Here’s an example. You buy a house with 10% down. Because you’re making such a low down payment, the lender requires that you purchase mortgage insurance – another $100 a month at least.
However, as the value of your home increases, so does your percentage of ownership. In 12 to 24 months, you could easily own 20% of the property’s value. Do you think your lender is going to call and suggest you drop that monthly mortgage insurance payment?
Not very likely. However, you can contact your lender and ask to drop the coverage because of your increased percentage of ownership. Save $100+ a month without doing anything but making a telephone call or, better yet, switching to another lender who offers a lower rate because of your perfect payment history.
The fact is, we all waste money. We work hard for it but we don’t pay attention to the little things that add up to a big number every month. Has your cable bill increased recently? Chances are it has. Is satellite the way to go? Well, it’s time to do some comparison shopping.
Smart consumers do their homework. They watch every penny and always get the biggest bang for their bucks. Shop around. Check your rates. Check the terms of your contract, whether it’s with your mortgage holder, credit card issuer or dish TV company.
Take the time to read the fine print. Then, periodically, check your monthly statement for new charges, rate increases or that surprise bump in monthly credit card rate because your check arrived one day over the line.
If you don’t watch your money, who will?
