Lower your mortgage without a refinance - FM Agency Group

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TWO WAYS TO LOWER YOUR MORTGAGE WITHOUT A REFINANCE

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

 

REMOVE PMI

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

 

LOWER YOUR HOME INSURANCE RATE

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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