ANSWERS: 1
  • When home owners think of lowering their mortgage payments, the term "refinance" usually comes to mind. But you can lower your mortgage payments without having to refinance the mortgage. By following a few instructions, you can possibly lower the payments and use the additional funds for other debts owed or savings needs.

    Look into re-amortizing.

    Ask your lender about re-amortizing your loan. You might have to pay a few hundred dollars and make a large principal payment. But you'd reduce the mortgage balance, shorten the loan, and lower your monthly payments.

    Ask your lender when the mortgage insurance ends.

    Check with your lender. "The costs for FHA mortgage insurance ends after approximately five years or when the loan balance is at least 78 percent of the property value," according to the U.S. Department of Housing and Urban Development.

    Challenge your taxes.

    Ask your township or county tax office about lowering your county and school taxes. Request a hearing, and bring information on why your taxes should be lowered.

    Lower your homeowner's insurance cost.

    Check your homeowner's insurance policy to verify any increases. Compare insurance providers for a reasonable rate that suits your needs and might lower your monthly mortgage payments.

    Speak with a HUD counselor.

    If you feel you have additional questions or are unsure of what steps to take and have a FHA loan, contact a Department of Housing and Urban Development counselor in your state. Find contact information at http://www.hud.gov/local/index.cfm.

    Source:

    HUD

    More Information:

    The Mortgage Professor

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