Your home is probably your largest asset and your mortgage payment is more than likely one of your largest expenses each month. When looking at these numbers do you feel like your monthly mortgage payment is too high? If so, here are a few ways to lower your monthly payment on your house.
Remove Private Mortgage Insurance (PMI)
Home values have risen dramatically over the past few years. If your original down payment was less than 20%, you’re probably paying PMI. Your home could have enough equity to refinance and remove your monthly PMI payments which could save you a lot of money each month!
Switch Your Loan Type
If you’re a first-time homeowner your current mortgage may be an FHA Loan (Federal Housing Administration). Although FHA is a great option for some, paying premiums for mortgage insurance and other costs are common with this type of loan. Now is also a great time to get out of your original ARM (Adjustable Rate Mortgage) because the rates will eventually increase for that type of loan. As home values continue to rise, it’s probably a good time to look at other options now and switch to a conventional or fixed-rate loan program.
Reduce Your Interest Rate
Rates are still historically low and if you haven’t taken advantage of lowering your interest rate on your current mortgage, now is the time! Reducing your interest rate by 1% can save you hundreds each month—and thousands off your total mortgage amount.
Modify your Home Loan
Unfortunately, sometimes things happen in life that can impact your finances—you lose your job, get divorced, etc. If you’re experiencing financial hardship there may be some loan modification programs, offered by the government. to help provide some relief. Or you may be able to refinance your current mortgage to a longer term.
Use our Monthly Payment Calculator to run the numbers to find out different options for your monthly mortgage payment based on your annual interest rate and the term of the loan. As these interest rates remain historically low, now’s a great time to focus on lowering your mortgage payment, saving money, and taking control of your finances.
Our team at Advanced Funding is trained to take care of your refinancing needs. Your consultation is free with no obligations if you decide now is not the right time to refinance. We’re here when you’re ready to compare interest rates and lower your mortgage payment. Call us at your convenience, at 801.272.0600.