Seven easy ways to lower your mortgage payments


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If you are currently paying for private mortgage insurance with a conventional loan, you may be able to withdraw it.

Home values ​​have increased dramatically, so your loan balance may now be 80% or less of current value. Check with your mortgage company about the process. You will likely need to order an appraisal.

Private mortgage insurance automatically wears off once the loan balance reaches 78% of the purchase price, but you don’t have to wait until then.

In Delaware, you can claim a deduction for the school tax portion of your property taxes. The requirements are that this is your primary residence, that you have lived in Delaware for at least three years, and that you are 65 years of age or older.

Consult your home insurance. Find out about lower rates by bundling your auto insurance with your home insurance, or opt for a higher deductible.

You could possibly recast your loan. Check with your lender if you intend to make a large payment on your principal. Some lenders allow this. The payment is reduced from the new loan balance.

You could refinance your loan for the exact number of years you have left on your current loan. If you opt for a lower interest rate than what you are currently paying, your payment will also go down.

You can request that your escrows be deleted. This way you only pay the principal and interest each month. You would pay homeowner’s insurance and property taxes as they are due. Overall, it’s not a reduction, but it does help with monthly cash flow.

If your current loan is FHA, you pay a mortgage insurance premium. If you think your loan balance is 80 percent or less than the value of your home, it would be a good idea to check out refinancing into a conventional loan. In recent years, the FHA loan product has the MIP attached to the loan for the entire 30-year term.

JoAnn Moore is a Certified Mortgage Originator, NMLS # 165477, for The Mortgage Market of Delaware LLC, Georgetown. For more information, call 302-855-1306 or 302-236-1229, or email [email protected]

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