Mothers definitely have a lot on their plate all the time. Managing household finances can be one of the most difficult pieces of the pie though.

The biggest expense that most families face is their mortgage payments.

However, there are definitely some ways you can save on mortgages too.

Today, we will share some creative ways to make mortgages for mothers easier.

1. Check your standard variable rate (SVR) mortgage

A lot of mothers may not realize that they are making a huge mistake when it comes to their standard variable rate (SVR). You should not stay on the same SVR after your introductory rate expires.

Staying on the lender’s SVR means that you are paying the amount your lender has set for you. Usually, it is high. Mortgage lenders make a profit through their SVR and that’s how they pay for the cheap introductory deal they sold you.

You should try to remortgage onto a better deal if you are still on the same SVR.

So, you should first confirm what rate you are paying on. Then, do some research on other mortgage rates. They usually change quickly and deals depend on your financial circumstances. You should speak to a mortgage broker to find the best rates for you.

2. Extend your mortgage terms

You can always try and increase the terms of your mortgage. This means that you will pay for a longer time but you will pay less every month. It can go a long way in saving monthly and you can use the money for other things instead.

However, it also means you will pay more interest in the long run.

If you want to pay off your mortgage quickly and plan for the long term, you can also reduce your terms. You will pay more right now but you will be done with the loan much faster. Plus, you don’t have to pay as much for interest. If you are budgeting for future expenses, it can be a good idea for you.

3. Find a better mortgage deal

Yes, you may already have a good mortgage deal, but there might be one out there that is better. There are some options that you can explore.

For example, if you have an adjustable-rate mortgage (ARM), it may have lower initial costs. However, your monthly payments can fluctuate every month based on the market. It doesn’t provide the stability mothers need to plan for finances. Fixed-rate loans can be a better option for families. You have to pay the same amount every month and planning your finances can become easier.

There are also some government-backed mortgages that might be a good idea for you. If you are part of a military family or are buying a home for the first time, there are plenty of great options. They come with lower interest rates and down payments.

We also recommend mothers to look into FHA loans that are designed for people who have low credit scores. They might be a good option for people who are getting high interest rates elsewhere.

If you don’t want to switch your current mortgage, you can also negotiate with the lender too. The best step for mothers is to advocate for themselves in the mortgage office. Asking for better terms or lower rates can often help you get the outcome you want. Bring up your concerns next time and make sure to nudge your lender in the right direction.

4. Try refinancing to a better plan

Refinancing is an old tried-and-tested method to reduce monthly mortgage payments.

However, you should only try it when the conditions are right.

For example, refinancing is a good option when interest rates drop. You may be able to get better loan terms with lower interest rates than when you first got your plan. Even if you are able to reduce your interest rate by 1%, you will see a huge difference in your overall costs.

While refinancing is helpful, it comes with some application and closing fees. You should make sure that the savings will outweigh the upfront costs that you have to pay.

Pro tip: Use a mortgage calculator to see if refinancing makes sense for your current financial situation.

5. Pay more on mortgage repayments

This one is hard but it works like a charm! You may be able to cut down your mortgage payments in the long term if you overpay sometimes.

However, and this is important, first check with your lender to make sure there aren’t any penalties for overpaying. Most lenders allow overpayments but there might be some limits that apply.

More importantly, only do this if there isn’t any other debt like credit cards that you have to deal with first. You should also have some money saved for a rainy day before trying to overpay your mortgage.

6. Improve your credit score

This advice is just for mothers who are about to take out a new mortgage loan. When you are applying for a mortgage, your lenders will check the credit score. It will be a huge factor in whether your application is accepted and the terms of the loan.

Before applying for the loan, make sure that you have done everything you can to reduce your credit score.

7. Recasting the mortgage

Recasting mortgages is a great option for mothers who have received a large sum of money or want to buy another home.

Mortgage recasts are when you pay a huge lump-sum payment on the principal and ask the lender to come up with a new payment plan with a lower balance. You can keep paying the same rates but because of the reduced principal, you will pay less every month.

8. Make some lifestyle changes

It may not make a huge difference, but making some lifestyle changes can move the needle in the right direction. You might be able to free up some extra cash to pay off the loans quicker.

You should reconsider ongoing but small expenses that you make every day. Try to cut out expenses like takeout, impulse buys, and subscription services that are eating up your money. It doesn’t seem like it can make a huge difference but even an extra $100 can go a long way every month.

Another idea might be to rent out a room or your basement to someone. It can help cover some of the monthly mortgage payments. If the costs are still too high, we also recommend that you relocate to a smaller house. Property taxes, utilities, and mortgage payments will definitely be lower for smaller homes.

9. Try mortgage relief options

Life happens, and there might be some unexpected expenses you didn’t plan for. Medical bills or job loss can make it hard to make mortgage payments. But don’t worry! There are some relief options you can try too.

Forbearance can mean that you temporarily lower the mortgage or suspend payments. However, make sure to get in touch with your lender before you miss out on any payments. This is essential as missing payments might result in your credit score dropping or even additional penalties.

There are also some loan modification programs that can change the conditions of the loan. They can help with monthly payments.

Conclusion

Reducing your mortgage doesn't have to be difficult. You may optimize your savings with careful planning, smart refinancing, government support, and a few lifestyle changes.