When we pay an average of $796.41 on our mortgages every month, there’s no wonder we’d like to trim those costs. Have you tried recasting? Known as re-amortization, this method allows you to pay a lump sum upfront in order for your lender to extend the term of your loan. This, in turn, lowers your monthly payments. In addition to the lump sum, you may also have to pay service fees, though. The downside of this trick is that you’ll pay interest for longer, so keep that in mind.
For those with a good credit score, refinancing your mortgage is also an option. But this also comes with extra costs for new fees and an appraisal, since you’re essentially applying for a brand-new loan.
However, this may not be a good option for those who’ve already paid a large sum already since you’ll be resetting the clock on your mortgage.
For those who did not put down 20% and are likely paying for private mortgage insurance, we have good news! You can cancel the insurance after you paid down your mortgage balance to 80%- just call them and ask them to cancel the PMI. The moment you reach the 78% mark, they’re legally required to do so!
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