{"id":1935,"date":"2018-06-26T07:35:48","date_gmt":"2018-06-26T07:35:48","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1935"},"modified":"2018-11-21T21:00:33","modified_gmt":"2018-11-21T21:00:33","slug":"LowerMortgagePayments","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/LowerMortgagePayments.aspx","title":{"rendered":"How To Lower Your Mortgage Payments"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Lowering your mortgage payments should be something that everyone is focused on. Who doesn’t want to save money? Especially when for most people the mortgage is the largest monthly payment that we make. There are many factors which contribute to the total cost of your monthly mortgage payment. Below, we will show you a few ways to accomplish this without refinancing. Then at the end, we will still show you a few refinance tips anyway.<\/p>\n

90% of lowering your monthly payments is all about just getting up off of the couch and making it happen. It is right there for you to do. You are not stuck with this large payment and you can do something about it.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Lower Your Mortgage Interest Rate<\/strong><\/span><\/p>\n

Many lenders or banks do not advertise this and not all offer this as an option. If your current interest rate is higher than what the going rates are today, we suggest that you call your lender and ask them to lower your interest rates on your current mortgage. I\u00a0am not talking about refinancing but a rate adjustment. If your lender offers this as an option, you may have to pay a few hundred dollars as a fee to make this happen. It could be worth it and potentially also could save you hundreds per month. At one point, I\u00a0had a 15 year fixed mortgage and noticed that the rates continued to drop. For a fee of $300, they reduced my rate for the balance of the loan which also immediately lowered my payment. Try this immediately.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Re-Amortize Your Mortgage<\/strong><\/span><\/p>\n

This process is basically re-setting your mortgage for another 30 years (for example)\u00a0BUT\u00a0doing it on your remaining balance. Let’s say your original mortgage was for $200,000 but now you have a balance of $150,000. When your lender re-amortizes the mortgage, they would re-start it for a new 30 years BUT the payment would be calculated on $150,000 vs $200,000. In theory, this should reduce your P&I\u00a0payment by 25%.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Remove PMI\u00a0Payments from Your Mortgage<\/strong><\/span><\/p>\n

If you financed your home with less than 20%\u00a0down, you may be paying monthly PMI\u00a0as part of your mortgage payment. PMI\u00a0is typically removed when your loan balance is paid down to below 80%\u00a0of the original purchase price. However, some lenders allow you to have PMI\u00a0removed if the loan balance is below 80%\u00a0of the current home VALUE. Call you lender to find out your options. It may cost you a few hundred dollars to get an appraisal, but you could make that back after the first two months of not having PMI[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Have your Home Re-Assessed for Tax Purposes<\/strong><\/span><\/p>\n

In many instances, a home’s tax assessment may be too high. If you believe that it is, then I\u00a0suggest visiting your municipality to find out how to challenge the assessment. It could mean that you would have to get recent sales comparables (comps) from similar homes in your area. OR, compare the assessment for those similar homes to yours. Be careful though…. you could end up increasing your assessment if you are not careful. The result of your efforts could lead to lower taxes which in turn would result in lower mortgage payments.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Shop for Cheaper Homeowners Insurance<\/strong><\/span><\/p>\n

Although your homeowners insurnace is not a huge portion of your monthly mortgage payment, everything adds up. You will be surprised to find out that\u00a0 your insurance agent does not always shop better deals for you. You need to call on occasion as a check in and then also shop for a better insurance company. Make them work to get you the best rates. Check your coverages and limits to see if they make sense for you. Sometimes increasing the deductible or lowering a coverage amount can make a big difference in your insurance premium.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Reduce Your Mortgage Escrows<\/strong><\/span><\/p>\n

When you close your loan, the lender will setup an escrow account for taxes and insurance. If your taxes or insurance go up, they will raise the monthly escrow payment. However, they do not always automatically reduce your monthly payment if your taxes have declined. Then, what is happening is that you start adding too much to your escrow account. We suggest taking a look at this to be sure you are paying the right amount each month.[\/vc_column_text][vc_empty_space height=”15px”][vc_column_text]Refinance To Lower Your Mortgage Payment<\/strong><\/u><\/span><\/p>\n

The obvious thing is if your current interest rate is much higher than the prevailing rates today, then yes if you simply refinance your current mortgage then your payments should be reduced. Here are some specific programs that can help which may be different than what you have today.<\/p>\n