If you own a home or you're thinking about taking on a home mortgage, it's important to keep in mind that a mortgage loan is not a static entity. Mortgages can change over time, but it's important that you understand how the mortgage you purchased works and what types of adjustments may be made to it over time.

Here are a few ways that you can manage your mortgage to suit your budget and lifestyle:

Paying Additional to Principal. By arranging with your lender to pay additional money against your loan principal each month, you can reduce your term and pay off your loan more quickly. Talk to your lender to understand whether you can arrange to do so.

Assessing Your Private Mortgage Insurance (PMI) Situation. By keeping a close eye on how much equity you've accrued in your home, you'll be able to determine when you no longer need to pay PMI, or private mortgage insurance. If you bought your home with less than a 20% down payment, you were required to pay PMI to protect your lender from risk. But if you've managed to accrue 20% equity, it's time for your lender to stop charging you PMI premiums – which will bring down your mortgage payments.

Examining Home Owner Tax Increases. Your homeowner tax rate is dependent upon the municipality in which you live, and the tax rate can vary widely from town to town. If you have a mortgage, it's likely that you have established an escrow (or savings) account that you pay into monthly as part of your mortgage loan payments. Your lender then draws from this account to pay your homeowner's insurance and property taxes. Both insurance and taxes can periodically see increases, so it's a good idea to keep track of these increases and consult with your lender if a tax hike or rate increase takes place, as you might want to adjust how much money you are contributing monthly to your escrow account.

Considering Refinancing Options. If you have an adjustable-rate mortgage with a climbing interest rate or a conventional loan with a less-than-favorable rate, you might want to consider refinancing with your lender. When interest rates are low, refinancing can save you a lot of money on your mortgage in the long term. However, if you don't plan to stay in your home for very long, refinancing fees can end up outweighing any value you would see from an interest rate reduction, so you'll need to assess your plans for the future before deciding whether refinancing is right for you.

Taking Out a Home Equity Loan. Once you have paid on your mortgage loan long enough to have equity in your property, you can consider whether you might be eligible for a home equity loan or line of credit to use for home improvements and renovations, to fund education, or to start a business. 

Managing your mortgage doesn't have to be difficult and it can give you greater control over your monthly payments and the overall life of your loan. If you have questions about how to access the information that you need, talk to your loan officer to determine what your options might be.

Would you like to learn more? Visit www.polimortgage.com for more information.