Easy ways to decrease mortgage costs

These days everyone is looking for ways to save money, especially with an expense as large as your mortgage costs.  With such a high price to pay for your house each month, it’s hard to have enough left over to continue doing some of the other activities you love.   If you fall into this category, here are some easy ways you can make your mortgage payments less expensive, and start freeing up some cash.

Look for the lowest APR

Taking some time to investigate different mortgage banks can greatly benefit you because, often, different banks will offer different APR’s. Although shopping around may be more time consuming than going with the first mortgage bank that comes to mind, once you find a better APR, you will be glad you did.  Mortgage costs are a long term commitment, so make sure to take special care to get all the best options you can find.

 

Go the extra mile

If you’re a great saver, or find yourself coming into some extra cash one month, consider making an extra payment to your mortgage.  This may sound counterintuitive, but this additional payment will go directly to you principal, instead of the interest.  You can decrease your remaining balance on your loan, and cut your mortgage cost by making just one extra payment a year.

 

Refinance correctly

When you refinance, you pay off your present mortgage with a new one. The goal in mind here is getting a lower interest rate and thus paying less money over the long run.  The catch, however, is not everyone should choose to refinance.  A good way to decide whether refinancing is right for you is to figure the entire cost of refinancing, and divide it by the sum of money you will be saving each month.  If you think you are going to remain in your house for a shorter period than it will take to pay off the refinancing costs, then refinancing is likely not for you.

 

Reevaluate your home value

Property taxes are a large piece of your homes expense.  These taxes are based on the amount your home is valued at, therefore, if you reevaluate your home value, you may be able to lower your property taxes.  You can accomplish this by petitioning our assessor and combating your assessment, which will potentially lower your tax assessment and yearly tax costs.

 

Change your present loan

Unlike refinancing, changing the loan you already have involves switching up the terms of your mortgage to make it more affordable, instead of obtaining a new loan altogether.  Similar to refinancing however, this choice will not work for everyone.  On most occasions, the homeowner will have to prove that some form of adversity has struck, like losing employment.  For the individuals who do qualify for loan modification, the loan term can be adjusted or interest rates can be lowered.

 

We hope these suggestions will help you make your new, or existing, mortgage more affordable. Just remember to try and treat your home, not only as the place you live, but like a financial benefit as well. Also, if you ever need any advice on selling or buying, feel free to call us at 1-816-561-0622.

Prime Realty Group is a locally owned, full-service real estate brokerage headquartered in the heart of Kansas City. We specialize in Property Management, Maintenance & Preservation, REO Valuation & Marketing, and Investor Acquisition Services.

For this and other blogs, check out our website at primerealtygroupkc.com. Prime Realty Group is a locally owned, full-service real estate brokerage headquartered in the heart of Kansas City. We specialize in Property Management, Maintenance & Preservation, REO Valuation & Marketing, and Investor Acquisition Services.