September 28, 2021

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Mortgage News

Seven easy ways to reduce your mortgage payment

If you are currently paying for private mortgage insurance with a conventional loan, you may be able to replace it.

Home values ​​have risen dramatically, so your loan balance can now be 80 percent or less of today’s value. Check with your mortgage company for the procedure. You will probably need to order a report.

Private mortgage insurance will automatically cancel if the loan amount is 78 percent of the purchase price, but you don’t have to wait until then.

In Delaware, you can request a school tax deduction from your property tax. It is required that it is your primary residence, that you have lived in Delaware for at least three years, and that you are 65 years of age or older.

Check your home insurance. Inquire about lower rates when bundling your car insurance with your home insurance, or choose a higher deductible.

You could potentially remodel your loan. Check with your lender if you intend to make a substantial payment to your financier. There are some lenders who allow this to happen. The payout will be reduced in relation to the new credit balance.

You can refinance your loan for the exact number of years you remain with your current loan. If you choose a lower interest rate than you are paying now, your payment will decrease too.

You can request that your escrows be lifted. That way, you only pay the principal and interest each month. You pay home insurance and property tax when due. Overall, it’s not a reduction, but it does help with monthly cash flow.

If your current loan is FHA, you are paying a mortgage insurance premium. If you think your loan balance is 80 percent or less than the value of your home, it would be a good idea to consider refinancing into a conventional loan. For the past few years, the FHA loan product has attached the MIP to the loan for the entire 30 year old tern.

JoAnn Moore is a Licensed Mortgage Lender, NMLS # 165477, for The Mortgage Market of Delaware LLC, Georgetown. For more information, please call 302-855-1306 or 302-236-1229 or email [email protected].