Tips to Help Reduce Mortgage Costs
If you are interested in trimming the cost of your home, you’ll be really pleased with this post! As a homeowner the biggest monthly bill you have is probably your mortgage, so how do you cut this cost? Read on for some of the most helpful tips – and you don’t even need to move to a new neighborhood!
1. Make an Extra Payment
You reduce your mortgage costs by making one extra payment at least once a year. Any extra payments you make will not be applied to the interest and will actually move your principal down.
2. Pay Bi-weekly
You can also satisfy your mortgage loan faster by setting up bi-weekly payments. Move half of your mortgage payment into a different account on payday and make all your payments from that account. At the end of the year you will have made one extra monthly payment.
3. Lose the PMI
If your mortgage balance is below 80% of your home’s appraised value, you can ask your lender to drop your private mortgage insurance. This can actually save you hundreds of dollars each month.
4. Get Reassessed
If your home’s value has moved down, you may petition your assessor and change the assessment. A lower assessment will definitely lower your annual taxes.
5. Reset Your Mortgage
Some lenders will actually reset your monthly payments if you make a larger payment toward your principal. When this happens your monthly payment will be the same but your loan term will be reduced.
Lance GroomsBack to all blogs
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