Mortgage Payment Tips
Mortgage payments are one the biggest monthly financial obligation for most homeowners in the US. Therefore, it’s not unusual to find homeowners searching for new ways to lower mortgage payments. And because of that, there are many solutions. If you’re unable to manage your mortgage payment, then your savings could be at risk, and you could then find it extremely difficult to meet your other financial obligations. Here are some smart tips to lower mortgage payment and maintain your financial sanity:
Search for low-rate refinancing
A refinance scheme with a lower rate can certainly help you lower your payments. However, refinancing is all about replacing your old mortgage with a new one. This can lead to more paperwork, incurring closing costs and processing fees, which might make things a little cumbersome for you. Thus, ensure that you stay long enough to recover all those costs!
Long-term refinancing
Go for a longer term while seeking a refinance which helps you spread out the payments for a longer time period. This is a great option to lower your payment, that is, if you are ready to cough up more interest.
Get rid of the Private Mortgage Interest
PMI, or private mortgage interest, can add up to several hundred dollars to your monthly payment. You can contact your lender and ask them to remove the PMI. Lower payments are possible when you can shed off these extra dollars from your monthly costs.
Reevaluation of the property tax
Just check whether you’re paying a higher property tax because of an inflated valuation of your property or not. You can get your property reassessed in order to find out its current value. If the property’s present value is low then the property taxes too will be adjusted, which in turn will lower your mortgage payments.
Pay off a part of the principal amount
Well, this might sound a bit weird but paying off a part of the principal amount will certainly lower your mortgage payment. If you have managed to successfully save some money then use it for repaying the principal amount.
Put a room for rent
That’s simply a desperate idea to earn some extra money and funnel that towards your monthly mortgage payment! However, if you’re not quite comfortable with any of the above ideas then it’s better to put a room on rent.
Believe me, lenders hate foreclosures, so they will definitely help you with the paperwork to lower your payments. Be persistent in your approach and it will certainly create the financial wriggle room you desperately need. And find 19 more ways to save money here. Best of Luck!
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