Just about anyone that owns a house and has a mortgage can benefit by lowering their monthly payment. Most people that need help with a lower mortgage payment fall into one of three categories.
>> Those who can not make their current mortgage payments
>> Those who struggle to make their current payments
>> Those who want a better mortgage than their present mortgage
Reducing your mortgage payment can mean the difference between being allowed to stay in your house and having the bank foreclose on your house. Whether you simply took on too large of a mortgage when you bought your home or you lost your job and no longer have sufficient income to pay the mortgage is not particularly important. What is important is being able to stay in your house.
It is also quite helpful to know how to lower your mortgage payment if you constantly find that you are running out of money several days before your next paycheck is due. By reducing the monthly amount you have to pay by even a couple of hundred dollars, you might be able to get control of your finances.
Still others should try to lower their mortgage to take advantage of the historically low interest rates. If you have a 7% or higher rate of interest on your current mortgage and still have a large balance before it is paid off, you can benefit by refinancing at current rates of about 4%.
How to Reduce Your Mortgage Payment
The size of your mortgage payment depends upon the principal amount being financed, the interest rate and the term (length) of the loan. There are fixed mortgages which generate the same monthly payment throughout the life of the loan. There are variable rate mortgages which change with current interest rates. There are also mortgages with low initial charges and then a big balloon payment. Following are several different ways for reducing your mortgage payment.
>> Pay down your principal and refinance your loan
>> Negotiate a lower interest rate with your lender
>> Extend the term of your mortgage (for example, from 15 to 30 years)
>> Change from a fixed rate to a variable rate mortgage
>> Pay your taxes and insurance separately – no escrow payment
These are just a few practical ways that a homeowner can reduce their monthly mortgage payment expenses. If you are going to get a new mortgage or refinance, make sure you shop around to get the best deal possible. Paramount Equity® can help!
Visit Paramount Equity® and talk to a Financial Specialist