How To Lower Your Mortgage Payment

Tips for Lowering Your Mortgage Payment 

THERE ARE MANY DIFFERENT WAYS TO LOWER YOUR MORTGAGE PAYMENT. IN SOME CASES IT'S NOT JUST ABOUT THE INTEREST RATE. IN THIS ARTICLE WE WILL DISCUSS DIFFERENT OPTIONS THAT CAN HELP YOU LOWER THE MONTHLY PAYMENT. 

REFINANCING 

Call a local lender or go online to verify if you qualify for a mortgage loan refinance.  To avoid having your credit pulled multiple times, (this can lower your credit score) call your local lender first. Most local lenders can verbally pre-qualify you based on the information provided to avoid pulling your credit. The credit will be pulled once you are ready to begin the refinancing process, but the goal is to eliminate the number of times it is pulled.

REMOVING PMI 

Private Mortgage Insurance. If you have PMI (private mortgage insurance) you don’t need to pay this forever. In order to eliminate the PMI you will need 20% equity in your home. You may need to have your home appraised and if you need a second opinion call your local realtor. Eliminating your PMI can lower your monthly payment by several hundred dollars. 

PROPERTY TAXES 

If the value of your home has decreased, have your property taxes reassessed. If this is included in your monthly payment you could be eligible for a lower property tax rate. 

HOME OWNERS INSURANCE 

Shop around. Check the current rates with other providers to see if you can lower your monthly or yearly payments. Make sure to compare pricing and coverage. In some cases you might be paying for more coverage than what is needed. Changing the deductible can help with lowering monthly payment too. Double and trip check everything. 

LONGER TERM LOAN 

Change the age of your loan. Switching the home mortgage loan from a 15 year or 20 year loan to a 30 year loan can help lower the monthly payments. If you choose to go with a longer term loan you can still pay it off sooner, if it makes sense. You can make a higher monthly payment later on in order to pay off the loan before 30 years. The goal is make the monthly payment affordable each month.