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Step 1
INTEREST
Your first step is to look at the percentage of interest your paying and determine if you can obtain a lower interest rate by refinancing. You will want to consider factors like how much you can lower your rate and how long you plan to stay in the house to determine if this is a good strategy for you. -
Step 2
PMI
PMI stands for Private Mortgage Insurance and if you financed your house with less than 20% down, chances are you are paying for this. Once the equity in your house has exceeded 20% through a combination of increasing home value and paying down principal, you will want to petition your lender to have the PMI removed. -
Step 3
TAXES
Most homeowners with a mortgage, have property taxes bundled in with their payment. While taxes are usually something you can't do much about, in this environment of falling home values, you may be able to appeal to have the governmental appraisal of your home lowered, thus lowering your property taxes as well. -
Step 4
INSURANCE
Homeowners insurance is also something that is commonly bundled into your mortgage payment and since many homeowners aren't used to paying that bill directly, they may be overpaying. Taking some time to shop around for homeowners insurance could help you lower your mortgage payment.
Comments
lacurcio said
on 6/25/2009 Great tips on lowering a mortgage payment!
creshanda said
on 6/21/2009 great articl tips, thanks for sharing, 5*
thisrealmommy said
on 6/18/2009 All great ideas! Thanks.
joanhaines said
on 5/13/2009 Good ideas to check on. Thanks!
izzytellsall said
on 5/2/2009 Like darokin, we upped our mortgage payments too--but we also refinanced for a lower interest rate so that now a lot more of our payment is going towards principal each month so that we'll be able to finish paying off our home a lot faster. These are great tips for someone who wants to lower their home payments--thanks for them!