A mortgage is one of the most significant investments that people make in their lifetime.
This translates into the fact that one of the biggest bills that we’ll ever have to pay is our mortgage.
We research our options, we commit our time, and throughout the mortgage, we seek ways to make those payments work for us.
We talk to banks, and we may even look online to see if there are better rates out there than the one in which we sealed the deal.
When you first purchased your house, you were probably so excited to have a home, that shelling out (sometimes) a few thousand dollars a month didn’t seem nearly as taxing as wasting hundreds of dollars in rent.
But as you got used to living there, and other life demands started tapping away at your income, you probably started to notice that a new month comes around much faster than you would have ever thought it could.
This is when it starts to cross your mind that it would be nice if you could get your mortgage payments down.
Although it doesn’t always work for everyone all of the time, you do actually have a few options to work with if you feel like your mortgage payments are too high.
As a matter of fact, some methods can get you a “discount” of as much as $1000.
Are you interested in finding out more?
If so, keep reading.
Mortgage Payment Too High? Here Are Your Options
Capitalize on having great credit.
Ask anyone with a good credit score (around the 770 mark), and they’ll attest to the fact that life is a lot easier when it comes to doing business, especially as it relates to their mortgage.
If you happen to have a good credit rating, one of the benefits that come with it is that you can speak with your bank about either reducing or even possibly eliminating related mortgage bank fees.
That’s a bigger deal than it might initially sound like being that fees can range anywhere from $650-1,500.
So how can you make this happen?
You might be surprised how simple the process is.
All you need to do is ask your bank.
Set up automatic payments.
There are a lot of businesses that give people who set up automatic payments a break.
It makes sense why because you’ve set up your account to where they know that they can withdraw money from you at the same time every month.
This means that for them, there is no drama and no surprises.
As it relates to your mortgage when you do this with a bank, they will sometimes lower your interest rate; this means that your mortgage refinance rate can be decreased without you going through the trouble of refinancing.
The heads up here is that if you happen to close your account with that bank, the bank can raise that rate back to what was originally offered.
Shorten your mortgage.
OK, here’s the deal with this one.
Say that you have a 30-year mortgage, and you are considering going to a 15-year one instead?
While you’re still going to be paying the same amount monthly, there is an upside with going the shorter loan route: You get to drastically cut down the interest that you would accrue with the 30-year loan.
If you do decide to go with this option, make sure to do some thorough research before settling on a mortgage company to refinance with.
There are always fees that apply that we sometimes overlook, including legal and bank fees, title insurances, and appraisals.
So, make sure that you take more into account than simply the monthly note.