You signed the paperwork and were handed the keys. You are now a homeowner. Thankfully, your mortgage rate is not permanently set when you sign the loan document. Homeowners in today’s housing market encounter unprecedented mortgage opportunities every day. Here are a few ways you can lower your payments:
1. Refinance your Loan
In instances when market interest rates drop, refinancing is a great option. This process involves taking out a new loan to pay off a previous one. While a lower rate may seem attractive, it’s important to consider other fees and charges associated with closing out the previous mortgage. If you calculate it correctly, you can determine when and how to break your existing loan for a mortgage with a better rate.
2. Renew your Current Mortgage
When it’s time to renew your mortgage terms, don’t just sign the dotted line. Many lenders hope most customers won’t do research on their own and will remain stuck with their old rates. Be a discerning homeowner, shop around, and have an honest conversation about your finance goals with your current mortgage lender. Renegotiating different terms or switching lenders often leads to significant savings and shorter payoff periods.
3. Cut Back on Your Lifestyle
Is there anything in your life you can live without? Think about what you can cut out of your lifestyle like TV channels, going out for lunch, long distance telephone plans that are never used, or lower vehicle or home insurance policies. With the savings you can prepay your mortgage down to cut down on the amortization.
4. Evaluate Yourself
There are a number of steps you can take regardless of market conditions. Keeping up with your payments and maintaining a strong credit score lead to lower rates. Increased income and less outstanding debt also mean more money in your wallet.
Finding a method to lower your mortgage rate is a rewarding process that requires dedicated research. A private home lender can work with you and develop hassle-free strategies to lower your mortgage payments. We’d be happy to answer any questions and provide you with information about renewing your mortgage and lowering your rates. Contact mortgage lender Nelson Sousa to set up an appointment. Call us at (877) 817-9984 or visit our website today.