How High is Your Mortgage Payment

Written by Rasheedat Oduola on . Posted in Home Buyers and Mortgagors, Mortgage Economy and Market

mortgage pay
Are you paying through your nose for your mortgage on a monthly basis? For most individuals mortgage is usually the highest expense on their list every month but how do you know if you are paying appropriately on your mortgage.

As a homeowner your interest rate should not exceed 4%. If it exceeds that percentage you might want to refinance that mortgage as interest rates have been lowered to 4%. This will ensure you save some money monthly on your mortgage. Do a research on the different lenders and compare their mortgage offers to determine which would be an appropriate fit for you.

For homeowners with an adjustable rate mortgage that has just been set to a higher rate, this new rate might be eating deep into your finances and budget. It might be advisable to switch to a fixed mortgage payment over a long term. This long term could be from 30yrs. This could help reduce your mortgage rates and thus having a lower monthly rate. You might want to involve the expertise of loan officers to advise the best option.

The amount of time you have to pay off your mortgage is also a very important factor as mortgage costs are not just about your monthly payments. If your income has recently increased you might want to talk to your lender about refinancing your loan to a shorter period as this will ensure you pay off your mortgage earlier than what your initial due date .Your lender refinances your loan from the long term fixed rate to a shorter term fixed rate. This could also help reduce the rate on your loan over the remaining period of payment.

You might want to talk to you lender or appropriate loan officer to know which one best applies to you .These tips at the end of the day irrespective of whichever applies to you should help you save perhaps thousands of dollars on your mortgage payments.

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