How to Reduce Your Monthly Mortgage Payments

Owning a home is a great achievement, but with it comes wise money management. First and foremost you ought to sit down and take a critical and analytical look at your financial status. After that, you can decide to buy a home in which you can afford to raise and pay for the down payment. As with any other loan, you might want to stay well within your financial means, even if it means consulting a professional financial advisor to help you in planning for the mortgage. Some of the cost factors to go through include the total cost of the property that you wish to buy, the monthly debt load (which shouldn’t be more than 40% your net monthly income) and the monthly housing cost (circa 32% of your monthly income). As any financial advisor will tell you, you should always endeavor to keep your debt ratio as low as you possibly can.

A reduced monthly payment for a mortgage is a dream come true for all homeowners. Here are a few ways you can implement:

–       Because the interest rates of mortgages in Hawaii are always fluctuating, it would pay to track down the changes and seek a mortgage refinance that will be at a lower rate in due time. This can considerably reduce your monthly pay out. However, you should do the calculations to find out exactly how much you will save when you seek to refinance and when you minus all fess and closing costs associated with mortgage refinancing.

–       The other way you can reduce your monthly mortgage payments is to shift from a short-term mortgage to a long-term one. This way, you can be able to earn low monthly payments until you get back on your feet financially.

–       Opt for biweekly payments or an accelerated equity plan, which will help reduce your mortgage burden faster

–       After you pay at least 20% of your mortgage loan, and you have a good credit history, you can always request your lender to cancel the insurance that you pay towards securing the mortgage. This will also help reduce the monthly payments significantly

–       Always go for a home mortgage loan that has some degree of flexibility in which you only get to pay interest on the outstanding balance daily. What this therefore means is that you can be able to offset the mortgage as per your income

–       Always check your calculations and your monthly bills to ensure the entire figures tally

A mortgage or home loan is exactly that, a loan/ debt that can become a financial burden if poorly managed. To be on the safer side, it is advisable that you pay off your mortgage as soon as you can.

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