If you are like most Canadians, then chances are you monthly mortgage payment is the largest expense that you making every month. Although, hearing this can be overwhelming, there is a way you can lower that monthly payment especially if you are finding your finances a bit tight each month. I have compiled 3 great strategies you can use to lower your monthly mortgage payments.
Let’s take a look at these three strategies.
- Refinance your mortgage.
Refinancing your mortgage is when you break your current mortgage in order to get a new one. If you can refinance your mortgage and get a lower interest rate, it is worth looking into. Even a small reduction in your mortgage interest can lower your monthly payments and save you thousands of dollars over the term of your mortgage.
- Drop your private mortgage insurance.
If you purchased your home with less than 20% down, you would have been required to purchase private mortgage insurance. But if you have been in your home for some time, and now have at least 20% equity in your home, you will be able to drop that insurance and save money. Don’t feel comfortable without mortgage insurance? Look into replacing it with term life insurance which is often less expensive and provides better coverage.
- Get a longer amortization.
If your current mortgage has a 15-20 year amortization period, you can reduce your monthly payments if you change to a 30 year amortization period. The drawback to this strategy is that you will be increasing your interest rates and therefore paying more over the life of your mortgage. But if you currently don’t have much breathing room in your finances at the end of the month, the change may be worth it for you.
Would you like to discuss ways that you can lower your monthly mortgage payment? If so, contact me today to set up an appointment.