My Mortgage Payment Just Increased by $100. Here's What I Did to Make Up for It

Two months ago, I opened a letter saying that our property taxes had increased and our monthly mortgage payments would be increasing by $100. 

I get that an increase in my mortgage payment does not register as one of life's more dramatic events. It probably wasn't even the most dramatic thing that happened to me that day. However, after moving to a new state and taking on a mortgage with a higher interest rate and a 33% higher mortgage payment, I didn't want to pay more. By the way, if you're picturing a grown woman petulantly stomping her foot, you're not far off. 

The purpose of this article is to let you know what I did once the pity party wore off, and I decided to take our monthly budget into my own hands -- you know, like a grown-up. 

Just a budget trim

I lightly combed through our budget. I wanted to avoid making deep cuts or feeling like we were losing something we enjoyed. I didn't think that losing something we enjoy to make up for the mortgage increase would make me feel better about the situation. Not at that moment, anyway. 

Besides, I only needed to come up with $100. In a matter of minutes, I was able to cut $238. Here's how.

Auto insurance coverage

You know that Progressive commercial that says, "Drivers who save with Progressive save nearly $750 on average?" They aren't kidding. After a quick online quote, I was able to save $864 annually by switching from Farmers Insurance to Progressive. I replaced policies on three vehicles without reducing our coverage. Monthly, that immediately put $72 back into our bank account. 

Homeowners insurance coverage

Once I received the quote from Progressive for auto coverage, I also checked what we're paying for homeowners insurance. With Farmers, we were paying $2,893 annually. For a bit more coverage (including extended replacement cost, earthquake, and water backup), our annual premium dropped by $782 to $2,111. We won't feel it until our mortgage lender adjusts our escrow account again, but at some point, that will be an additional savings of $65 per month. 

Subscription boxes

I noticed it was time for the annual subscription to my quarterly beauty box to expire. Given that my walk-in closet looks like the storage room of a med spa, I have more than enough potions, lotions, and elixirs. At an annual cost of $180, that was another $15 on our side of the ledger.

Streaming video 

Like millions of Americans, we stream our entertainment. We watch so many United Kingdom-based detective shows that we can pretty much quote the Irish and British versions of Miranda Rights. After quickly running through our streaming channels, I realized we were not watching any PBS shows at that moment. Cha-ching. That was another $8 a month. 

Streaming music

We've had Amazon Prime for years and, by extension, have been paying for Amazon Music. And yet, for some reason, I have continued to listen to another streaming service and pay $10 monthly for the privilege. Quickly jumping online to cancel that service brought our monthly savings to $105 (or $170 once escrow is adjusted). 

Yes, $100 will go to pay the new, higher mortgage payment, but I'm celebrating the little victories here.

A deeper budget cut

But wait; there's more. Since they were puppies, we've had two separate pet insurance policies on each of our dogs. Now that they're senior citizens, keeping the major medical coverage makes sense. After all, you never know when a pup will need an artificial hip. 

However, due to staff shortages, it's been months since we've gotten them into the veterinary practice attached to their wellness plan. We were paying $143 monthly for both but haven't had access to preventive care. 

Still, the idea of dropping the wellness plan made me nervous. I was sure one of them would develop diabetes the moment I canceled. Rather than cut the expense immediately, I made an appointment with a nearby veterinarian, took one of the dogs in for a check-up, and got a schedule of their office prices. I asked for everything, from vaccinations to dental cleanings. 

Paying $143 monthly meant we were shelling out over $1,700 annually for wellness protection. After reviewing expenses with the vet, I realized that $1,700 would be enough to meet their basic wellness needs at the new vet's office. If something big happens and one of them becomes ill, we still have an excellent pet insurance policy to help us minimize out-of-pocket expenses. 

As much as I struggled to make a decision, I think it was the right one. Rather than make a payment on their wellness plans each month, I'm now slipping that money into a savings account that I labeled "Dogs' Medical Care." Hopefully, we won't have to dip into that account, but it's good to know it's there if we do. 

A good use of time

It's possible that I overreacted to the $100 increase in mortgage payment, although something good did come out of it. Not only did I realize that I must stop waiting so long between budget check-ups, but I was ultimately able to cut $137 from our auto and homeowners insurance. In total -- along with the other cuts -- I was able to free up $313 per month. I really should send our county property assessor a thank-you note.

On second thought, maybe not.