One of the quickest and easiest ways to put cash in your pocket is to cut your expenses by lowering the cost of your monthly mortgage.
Here are some ways you can decrease, or even eliminate, your monthly mortgage payment.
Refinance Your Mortgage
Recent studies have shown that nearly half of all homeowners have not refinanced to take advantage of lower mortgage rates. This means that almost half of all homeowners can put more cash in their pockets by refinancing.
If you have not refinanced in recent years, you may be able to save a few thousand dollars every year by refinancing.
- Refinance To Save On Your Monthly Mortgage
- Would You Like More Discretionary Income? Refinancing Your Mortgage Could Be The Answer.
- Wall Street Journal: Refinance Soon If You’re Thinking About It
- Should I Refinance My Home?
- What does it cost to refinance? What are the benefits?
Cut Your Mortgage Insurance Expense
Mortgage Insurance can cost you a few hundred dollars a month, especially if you have an FHA mortgage. So, if you eliminate the mortgage insurance from your monthly mortgage payment, you can save hundreds of dollars each month.
You may need to refinance to eliminate the mortgage insurance from your home loan, depending on a number of factors.
If you are buying a home or refinance your mortgage, you can possibly eliminate or reduce the PMI from your mortgage:
If you have not owned a home in 3 years, you may be eligible for a new FHA program set to launch October 1, 2014, which could reduce your mortgage insurance premium (MIP):
- New FHA HAWK Program: Borrowers Earn Significant MIP Reductions (article)
- Lower Mortgage Payments With The FHA HAWK Program (video)
If you need an immediate infusion of cash, one way to get cash out of your home is with cash-our refinancing. This is where you refinance your home and borrow more than you owe on your mortgage. Then after the mortgage and loan costs are paid, you receive the extra cash.
Learn more about the FHA Cash-Out Refinancing program with this video and article:
- FHA Refinance | FHA Streamline Refinance, FHA Cash-Out Refinance (article)
- FHA Streamline Refinance and FHA Cash-Out Refinance (video)
A reverse mortgage allows you to turn your home equity into cash, and can be a perfect solution for individuals who are 62 or older. Homeowners typically defer payment of the loan until they die, sell, or move out of the home, but other payment options are available.
The cash from a reverse mortgage can be used to pay off an existing mortgage, eliminating the home owners monthly mortgage expense, and/or the homeowner can receive cash.
Learn more about reverse mortgages:
There are so many options for reducing your monthly mortgage payment, it’s very difficult for a homeowner to figure it out alone.
As a mortgage broker, we will show you the options available to you. Then when you are ready, we can help you make the mortgage changes resulting in lowering or eliminating your monthly mortgage payment.
When you get ready to make a change with your mortgage, please contact us to get started. We love helping people save money on their monthly mortgage.