Monday, October 24, 2011

How Can You Reduce Your Mortgage Payments?
This is a guest post written by Scott at mortgagefit.com 



How Can You Reduce Your Mortgage Payments?
Most of the home-owners are looking for the suitable way as to how they can reduce their mortgage payments. This is because the cost of living is increasing day by day and so it has become necessary to reduce your mortgage payments. With the help of mortgage refinancing sites you will find various options with the help of which you can afford to manage your monthly payments and pay them on time.

5 Ways to reduce your mortgage payments

Go through this article to know about 5 ways how you can reduce your mortgage payments.

Payment holidays - If you face any emergency situation, some traditional lenders may offer you extra benefits such as “payment holidays”. These features are quite often seen on the credit cards where you receive your monthly statement and the lender agrees to waive off your credit card payment for a month. Though the interest rate still exists on your credit cards, it gives you sometime to manage your payments. The mortgage lenders are also doing the same thing and so, you should willingly talk to your lender if they can waive off your mortgage payment for a month.

Opt for refinancing - You may chose to opt for mortgage refinancing or increase the amortization period for a long time in order to lower your mortgage payment. If your present mortgage is for a time period of fifteen years, you may take out another mortgage loan for a period of twenty years. It is true that it takes long time to build equity in your property since you make your payments with high interest rate but by making low payment every month you’ll get at least some relief.

Low interest rate - In case you have to pay high interest rate or variable interest rate on your mortgage payments, it is wise that you choose mortgage refinancing and avail low interest rates on your loan amount. Even if the interest rates have not fallen, if you have a good credit score, you will be able to get a low interest rate on your mortgage loan.

Make interest payments – You may lower your mortgage payment with the help of interest payments only. This can be said as the best option and the lowest type of mortgage payment you want to make. The negative aspect of it is that you will not be able to build any equity in your property but once you regain your financial stability, you will be able to renew your mortgage payments with much better terms and conditions.

Save your interest - If you have more than one mortgage loans on your house, you’ll have different interest rates for different loans. When you combine all the loans altogether, you’ll be able to get the same rate and you can also save your interest at the same time. However, when all the debts are combined together, the mortgage payments will be little low as to when they’re paid separately.

You will find some people who may choose to move to a less costly home in order to reduce their monthly mortgage payments. It may happen that few members in the family have shifted to another place and so, it will be useless to live in a big house. You may sell your home and buy a new one which suits within your economy so as to reduce your mortgage payments.

1 comment:

  1. Great writing and thank you for sharing it with us I really like that …
    Alberta Mortgage Broker

    ReplyDelete