9 Tips To Help You Save Money On Your Mortgage
Save Money On Your Mortgage: 9 Ways
You have just purchased your home and have signed the docs for a 30-year fixed rate mortgage at 4% for $200,000. Now your payment for principal and interest is $955, but this doesn’t mean you have to end up paying $340,000+ over 30 years. In this article we are going to look into the 9 ways you can actually save money on your mortgage. With a lot of the tips that are following, you will see that there are ways to save thousands of dollars over the course of the loan. Do yourself a favor and take these tips to heart and try to get them done, you will thank yourself down the road. As always, if you should have a question with a tip please feel free to reach out to me any time at 888-900-1020, email me at email@example.com, or visit either of my websites www.loanconsultants.org.
1. Bi-Weekly Payments
When looking to Save Money On Your Mortgage one of the best things you can do is sign up for bi-weekly payments. What happens here is over the course of the years you are making 26 half payments or the equivalent of 13 full payments. This means that you are making one extra payment every year. When you do the math this will get you loan paid off in 26 years versus 30 years and save you over $45,000 over the course of the loan.
2. Additional Payment
As an addition to the previous tip, just making an extra payment every year can also get the same accomplished. Let’s say that you get a tax return every year, if you can allocate an additional payment, you can see similar savings as you see in tip #1.
3. Eliminate PMI or MIP
One of the big expenses every month besides your principal, interest, and taxes is your PMI or MIP if you did not put at least 20% down on your property. If you have lived in your home for a while and have at least 20% equity in the home, you can request that the PMI be removed from your Conventional Loan. In terms of FHA Loans you will be forced to refinance out of your FHA loan if you wish to remove MIP as this will never go away as long as you have an FHA loan. You can easily save $100-$200 per month.
4. Refinance Your Loan
If you wish to obtain a rate/term refinance this can easily reduce your monthly payment thus allowing you to Save Money On Your Mortgage. Let’s say your original 30 year $200,000 loan was at 6% and you can refinance it to 4% this can save you $244 per month or almost $3,000 per year. Refinancing is always a quick and easy way to reduce your rate.
5. Modify Your Loan
This was a great program that started a few years back and is still going on today. If you are looking to Save Money On Your Mortgage and you fell victim to high loan amounts on inflated property values, you may be in luck. If you get approved for a loan modification through showing financial hardship, you can trim your payment considerably and ultimately stay in your home.
6. Reduce Property Value Assessment
After we have just gotten out of times where property values were falling at historic rates, you can ultimately appeal your property value assessment in an effort to Save Money On Your Mortgage. Since property taxes cost you hundreds of dollars per month, getting your home value reduced can allow you to save on your property tax bill and your monthly mortgage amount.
This is something you may not want to do, but if you are empty nesters or just looking to Save Money On Your Mortgage, then downsizing might be an option. If you can sell your current home and move into a place that is less money. Ultimately your mortgage amount will be less and your property tax. These two factors will definitely save you money.
8. Evaluate Insurance
If you haven’t shopped around for insurance, you might be doing yourself a disservice. In a world where you can negotiate and shop around for anything online, an easy way to Save Money On Your Mortgage is to reduce your homeowner’s insurance premium. If you escrow your taxes and insurance, this is a simple way to reduce your monthly escrow amount by choosing a plan that could be $300 or more less per year. This can save you more than $30 per month
9. Creative Use Of Credit Cards
This might not be the easiest way to Save Money On Your Mortgage but if you have an offer for 0% on your credit card, you can always pay additional to your mortgage up front and then pay off that amount over the promotional period. During this time, you can invest the money you would have spent on your mortgage so by the time you need to pay off your credit card, you have accumulated some interest and actually made money.
As you can see, there are many ways for you to Save Money On Your Mortgage. Some of these will have to be done strategically while others are rather easy to accomplish. If you need help during this process feel free to reach out to me any time at 888-900-1020, email me at firstname.lastname@example.org, or visit either of my website www.loanconsultants.org.