Many of us have them but probably wish we could eliminate them. We usually carry them for 30 years but would like to eliminate them earlier. That would be your monthly mortgage payment. If you can eliminate them sooner you will increase your monthly cashflow and simplify your personal finances. This week’s simple tips offer you some ways to help reduce your monthly mortgage payment so you can live a simplified financial lifestyle.
Here are this week’s tips to help you reduce your mortgage payment:
Refinance your mortgage - Interest rates are low now. Check to see if you should refinance your existing mortgage it may save you money. This post 7 questions to ask to help refinance your mortgage offers some tips to help you refinance your mortgage.
Eliminate Principal Mortgage Insurance (PMI) – If you put less than 20% down on your mortgage your mortgage company probably required you to pay monthly PMI. You should check to see if you have 20% equity in your home now so you can eliminate this monthly payment.
Make extra payments – Eliminating your monthly mortgage payment should be a long term goal if you are looking to live a simplified financial lifestyle. To do this consider making an additional principal payment to your mortgage so you can eliminate this debt quicker over time.
Review your insurance and taxes -Review your current homeowner’s insurance to see if you are properly insured. While reviewing your insurance coverage, receive insurance quotes from other companies to see if you can lower your annual premium. Also review your property taxes to make sure you are paying the appropriate amount of taxes based on the current value of your home. Consider protesting if you believe you are paying more than your property is currently worth.
Automate your payment – many times mortgage companies will provide you a discount on your interest rate if you have your mortgage set up for automate payment. So if you are refinancing your mortgage or in the process of purchasing a new home consider automatic payment of your mortgage. Doing this will not only save you some money but it can also save you time and help you eliminate late fees.
Review your current mortgage to see if you can implement any of these tips to help you reduce your mortgage payment so you can save money and simplify your personal finances.
Til next week take one step at a time to simplify your personal financial life.