If you are looking for a space to breathe because of mortgage payment pressure, you are not alone. Here are a few tips to lower the mortgage rate instantly.
Get rid of mortgage insurance
If you have an FHA loan, then there is a possibility that you have to pay a monthly mortgage insurance premium or shortly known as MIP. If the rate of the payment is more than 10% down, then you have to pay MPI for 11 years long. But if the rate is below 10%, you may have to pay the loan for the rest of your life. In case of being stuck with MIP, shift it to a conventional loan. Refinancing your loan to a general loan schema will give you enough opportunity.
Shop around for lower insurance rates
Paying homeowners insurance comes with like shopping for better homeowners’ insurance. But you have to work a bit hard to find to get the perfect loan for you. Connect with various insurance companies so you can ask for quotes, don’t get shy about asking for discounts. There is an option for saving money on certain features like security systems, fire alarms, etc. Additionally, it is possible to review the coverage of your loan to check If you are paying an unnecessary amount.
Evaluate property taxes
Having an escrow account on your mortgage means you are paying property taxes with monthly mortgages. The property taxes are based on tax assessment. If the assessor values your house too high, there is a possibility that you may have to pay more tax. Appy for re-evaluation of tax assessment so you can reduce the amount.
