Your mortgage payment is most likely your largest monthly expense. But there are ways you can decrease your monthly payment and pay off your Pembroke Pines home loan faster. Here are some tips to help you save money:
1. Make an Extra Mortgage Payment Each Year: This is the easiest way to save money because these extra payments are automatically applied on your principal, not interest. Not only does your remaining balance drop, but you will not have to pay interest each month on that principal for the remainder of the loan term.
2. Create a Bi-Weekly Payment Plan: Another way to pay off your loan early is by puting half of your monthly mortgage payment in a savings account every other Friday. Each month, pay your mortgage from the account. At the end of the year, you will have made 26 half payments, which is 13 full payments. This will leave with you an extra payment that you can put toward your principal.
3. Cut your PMI: Many people are forced to pay private mortgage insurance (PMI) because their down payment is less than 20 percent. You could shave hundreds of dollars off your monthly payment by doing a petition your lender to cancel the insurance as soon as your mortgage balance falls below 80 percent of the home’s appraised value. This can happen if you have repaid some of the principal or your home’s value has gone up (you may require a new appraisal).
4. Lower Your Property Assessment: Property taxes can be thousands of dollars a year. You can petition your assessor and fight your assessment if you think your home’s value has decreased in the last year and it was not properly accounted for in your tax assessment. Lowering your tax assessment will lower your yearly taxes.
5. Recast Your Mortgage: When you make large payments toward the principal, some lenders are willing to recast (reset) your monthly payment . Usually, when you put money toward your balance, your monthly payment stays the same but the term of your loan shortens. When the loan is recast, your monthly principal and interest is recalculated so you have a lower monthly payment over the existing term of the loan.
6. Request a Loan Modification: If you are late on your payments and are going through a financial hardship, you may be eligible to modify terms of your loan to make it more affordable and allow borrowers to stay in their homes if they continue making their lower monthly payments. Not everyone qualifies for these types of programs, but if you do, they can save you a lot of money. To find out if you qualify, contact the servicer of your mortgage or visit the Making Home Affordable eligibility site.
7. Refinance Your Mortgage: The most common way to save money is by refinancing your mortgage to a lower interest rate. However, there are costs associated with refinancing so you want to be sure you are going to save enough to cover the refinancing fees. With rates at historic lows, if you can refinance, and you haven’t already, you should.
Savings will vary based on your actual loan facts and timing of the change, if you need more information contact Adrian Valdes and he will provide you with all the information you need. His goal is to help you with all your Real Estate needs.





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