3 WAYS TO REVOLUTIONIZE YOUR CREDIT IN 2016

#1 Call and tell your lender to get rid of your mortgage insurance!! 
Even if your down payment was less than 20% when you purchased the home, you may now have the equity needed to remove the insurance. You can call your mortgage servicer an in less than 30 minutes to find out just what is needed to remove your mortgage insurance!\

 

Cut your monthly expenses!

#2 Pay down your principal
Tax returns, yearly bonuses or inheritances are great ways to reduce your mortgage payment. Although it won’t affect the payment itself (other than reducing your mortgage insurance payment, as described above), the smaller your loan to value (LTV), the sooner you can shake your mortgage insurance completely. It may take a couple of years of turning your tax refunds over to the mortgage company, but it’ll save you a big chunk each month to be free of mortgage insurance.

 

Be aware that this only really works with Conventional loans, if you have an FHA loan you can refinance into a Conventional loan product once you’ve reached the right LTV. On a Conventional loan, you can drop your mortgage insurance entirely when you reach 80 percent LTV. Even if you don’t quite have 20% equity in the home your mortgage insurance can be reduced based on what you owe versus value of the home.

 

#3 Refinance your mortgage 
Most homeowners do not know that sometimes even a .25% drop in interest rate can save them hundreds or even thousands of dollars per year. According to Bankrate.com more than 40% of all existing mortgages could be refinanced to a lower interest rate to reduce the monthly payment. The good news is you may not have to start your mortgage again either. You can choose from 10, 15, 20 and even 30 year loan terms.

 

#4 Shop your home owners insurance

The easiest way is to go out and get new quotes from different insurance companies — this is pretty straight-forward. Buy the policy with the best price and comparable coverage and drop your old one (but don’t forget to tell your lender, who your new insurance company is!)

 

 

Searching for a mortgage can be tricky. Call me and we find the best loan for you!

435-216-3081