Paying for your mortgage is probably one of the largest monthly expenses you can ever have. But in cases where you spend too much on almost everything nowadays, how do you know that you are also paying too much for your mortgage? With the interest so low in these days, many homeowners can reduce and cut their monthly expenses at a record low. They can do this through mortgage refinancing.
Here are five telltale signs saying that you are paying too much for your mortgage as well as solutions on how to reduce mortgage interest.
1. Your interest rate is more than 4%- The interests on mortgages have already been lowered so if you are still paying your mortgage with interest rate at above 4%, then you can actually save a couple of bucks - $200 a month - through mortgage refinancing. One of the things that you could consider as of the moment is cutting back on your expenses. You can do this by trying to avail of the services of LendingTree, one of the largest online mortgage financing companies in the country. This service allows you to compare and contrast lending offers and see how you can save money through this. This service is fast and reliable.
2. Your ARM has already been adjusted or is starting to adjust- When you feel that your adjustable-rate mortgage (ARM) has already been positioned at a higher interest rate, you might consider whether a 30-year fixed mortgage is just right for you. LendingTree can make this adjustment for you as it can bring you loan officers who can give you loan options. There are also low mortgage rates you can apply to give you that peace of mind you so rightly deserve.
3.
Your credit has dramatically improved once you are able to avail of your loan- You could have paid a premium on your interest when your credit is initially poor and fair at the beginning. Lenders have all the right to reserve low interest rates to those with a good credit history. If your credit has improved and since you are already paying your mortgage, you might want to think twice. You probably are paying a high interest rate.4. You have an increase in income- When your income has increased over the past few years and you have a budget to spare, you might want to consider mortgage refinancing to a shorter term. When you shift from a 30-year mortgage loan to a 15-year mortgage loan, you are paying a lower interest rate and a lower total interest over the whole life of the loan. This can bring you lots and lots of savings. What’s more, LendingTree can help you in this aspect.
5. You may have a jumbo loan- A jumbo loan means that you are paying $417,000 as interest rates as compared to conforming loans which are less than the said amount. How to reduce mortgage interest? During the past years, the difference is getting wider which means that jumbo loans cost higher. Nowadays, it’s shrinking and instead of jumbo loans, you can now avail of the conforming loans.
0 comments:
Post a Comment