4 Ways to Reduce Monthly Mortgage Payments
16 Nov 2015
After signing the home loan agreement and stepping their feet on the new house, homeowners will have a dream to finally pay off their mortgage. They should be able to free themselves from the concerns of fulfilling their monthly payments and shackles of interest rates. For many families, monthly payments actually take a huge chunk out of their monthly income. In many cases, young couples could only save very little, because they need to allocate money to pay for student loans, mortgage, wedding loans, car loans and other things needed to start a middle-class family. Fortunately, there are things they can do to slash their mortgage repayments significantly. This will allow us speed up our rate of repayments:
- Ask for better deals: After being a good customer of our mortgage lender for more than a couple of years, we should expect that we are rewarded with some additional benefits. In this case, we should try to negotiate for a better deal. It is a good idea to call up our lender by speaking with someone in the customer retention department. We should ask them about the remaining amount that we need to pay to complete the mortgage process. We should get favourable responses if we are indeed a highly valued customer. We should remember that we won’t get something if we don’t ask for it, so we should be quite adamant about it.
- Shop around: However, some lenders may not be responsive enough even to good customers. In this case, we should shop around and there are actually more than a few reputable lenders who are eager to introduce us their mortgage products. Online sources should allow us to get special deals and great rates. We should do everything within our power to properly attract new customers, so it is important for us to be somewhat shrewd. Even so, when looking for new lenders, we should look check clauses for hidden charges.
- Ask for professional helps: If we can’t confidently find a safe option when shopping around, then it is time to call in the cavalry. There are many independent mortgage brokers who are regulated and licensed to help consumers. They should have good access to the local mortgage industry and they will be able to offer the proper kind of mortgage product. In this case, the amount we repay for the whole duration of our loan should be reduced if we do this properly. The broker should be fee free and he/she must be compensated for their services by our new lender. If we are not sure, we should get references and testimonials about specific professionals.
- Trim out all extras: Some mortgage lenders are quite notorious for their insistence to sell overpriced add-ons, such as income protection, contents insurance, home insurance and life insurance. Literally, we should be able to save a few thousand dollars annually by avoiding unnecessary insurance premiums.