Your mortgage costs aren’t always set in stone.
If you want to reduce your monthly payments or lower your long-term costs, there are several options for you to explore. While methods may vary depending on your loan type, financial profile and goals, there are strategies that can help lower loan expenses now or in the long haul.
Are you looking for a way to make your mortgage more affordable? Here are three ways to do so:
1. Refinancing: Through refinancing, you can change the length of your loan (also called the term). If you choose a longer-term loan, for example, you can spread your balance out over more months to reduce your monthly payments. Refinancing also allows you to switch loan types (which can also lower your payments), get a new interest rate, or adjust other elements of your loan.
2. Putting Extra Money Toward Your Principal: Some loans have penalties related to paying off your loan early. But for those who don’t have prepayment penalties, making extra or larger payments lets you pay off your loan faster, can reduce your long-term interest costs, and can make you eligible for recasting.
3. Recasting: Mortgage recasting is when your monthly payments are recalculated based on your current loan balance. If you’ve paid down your loan quite a bit or put extra cash toward it, recasting could reduce your payments and change your term length without the need to refinance.
If you’re hoping to reduce your mortgage costs, get in touch today to discuss your options and get your questions answered.