Is Your Mortgage Payment Schedule Too Burdensome?
Some don’t have the financial stability necessary to continue making high monthly payments to a mortgage. Luckily, you have options if you’re in this situation. The most important thing to keep in mind as you start to learn more is that you should never just stop making payments. That won’t be a show of good faith and it won’t show your lenders that you are trying. Instead, consider one of your options.
Refinance a 30-year mortgage
This depends on the age of your loan and the difference between the interest rates. Since you pay more at the beginning of your loan (because the interest is accruing on the whole balance), that’s when the interest rate is more important. So if your loan is newer, it benefits you to refinance early because the difference between the current and potential interest rate will be hire. However, refinancing your monthly mortgage payment also resets your loan.
Drop your private mortgage insurance
Private mortgage insurance is added to home mortgage payments being made on a loan that had less than a 20% down payment. If you can pay back enough to gain 20% equity of your home, you can contact your lender about dropping that insurance. It will help improve your mortgage payment schedule and save you hundreds of dollars.
Extend the life of your loan
There is a huge difference between a 10-year and a 30-year mortgage. The longer the loan, the lower your payments and the shorter the loan, the higher the payments. If you currently have the latter, consider extending your loan period. It will help make the principle and mortgage interest payments much more reasonable and you’ll have an easier time paying it off.
Have your tax assessment reevaluated
If your assessment and taxes are too high, it will translate to your mortgage, which means you’re paying too much. Having the assessment done again will make your mortgage reflect those lower taxes.