5 Practical Ways To Lower Your Monthly Mortgage Payments
Most Americans spend a considerable amount of their monthly income on mortgage payments. And when you’re spending so much each month just to stay in your house, you won’t have as much to spend on basic necessities. Eventually, if you can’t afford the payments, you’ll have to sell your house fast in Georgia . But don’t worry! There are some things you can do to ensure you pay lower monthly mortgage payments, and we discuss these strategies below.
1. Reduce Your Interest Rate By Refinancing
A lot of homeowners refinance their mortgage so they can get a lower interest rate. Refinancing is worth it if you can reduce the current interest rate you pay by at least 0.75%. If you expect to keep the house for a while, this is the first option you should pursue. If you have good credit, your lender will probably let you refinance, though you may have to show proof of income and meet other qualifications to refinance. Effective refinancing can save homeowners tens of thousands.
2. Ditch The Private Mortgage Insurance (PMI)
You might be paying PMI if you have a conventional loan and the down payment you put down was less than 20% of the home’s price. Or, if you have a loan guaranteed by the FHA or USDA, you’ll need PMI until the loan is paid back. However, in either instance, you could negotiate your way out of paying PMI.
3. Requesting A Mortgage Forbearance
A forbearance program might be helpful if you’re having trouble making your mortgage payments because of your current financial situation. With forbearance, you can stop or reduce your mortgage payments for a predetermined period.
4. Select An Interest-Only Mortgage
Some mortgage lenders write interest-only loans, and borrowers who take out such loans are only required to pay mortgage interest for a predetermined period. After this predetermined period has passed, you’ll have to start paying down the principal along with the interest.
5. Apply For A Mortgage Loan Modification
If you’ve been struggling financially for a while, requesting a loan modification could help you reduce your monthly mortgage payments. Your lender could restructure your loan by lengthening the repayment period, lowering your interest rate, or lowering the principal.
Are you at risk of losing your Georgia home because your financial condition isn’t getting any better?
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The author is a popular cash home buyer in Georgia, one that helps homeowners who are facing tough financial situations. You won’t have to make repairs before selling to them. Visit https://justsellitasis.com/ to learn more.