Lower your mortgage without a refinance - FM Agency Group



Refinance is the best way to lower a mortgage but it can be the most costly and some homeowners don't want to add more years to a home loan...they want to pay it off

Here are two ways to lower your mortgage without doing a refinance



PMI or Private Mortgage Insurance is when a lender adds this coverage to your mortgage to protect their loan if you default 

To remove PMI you must have at least 20% of equity in your home

Equity is when your home value exceeds the mortgage amount owed

You owe 180,000 on your loan but your home is worth 225,000

You have 45,000 of home equity and 20% equity

You will also need to have paid down your mortgage balance to 80% of the home's original appraised value

When this happens you need to ask the lender to remove PMI


How to cancel PMI sooner if you don't qualify for the above?

Get a new home appraisal but their is a cost starting at $300

Start pre-paying down your mortgage note by adding as little as $50 extra each month

Ask your lender to give you the estimate on the time frame when you can cancel PMI



Are you currently getting the lowest rate available in your zip code?

If you have not checked your home insurance rate in a few years, rates have gone down

You can lower your home insurance rate at any time during the policy period

You are not locked into the home insurance policy for the year

You can get a re-rate and move to another home insurance company now


If you can lower your home insurance rate by $1000 which is $83 less a month on your mortgage payment

You can shorten your loan payoff by a year and save over $2,610 in principal and interest

If you want a home insurance quote to obtain the fastest way to lower your mortgage, complete the quick form below or give us a call 504.348.3131 and ask for Tim

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