Monday, November 29, 2010

Ways to reduce your mortgage payment

First, there is always the option of making extra payments toward principal yourself.  But don't fall for some businesses that promise results by paying them...Just make the same payment to your loan servicer and ask them to apply the extra amount immediately.

Next, you can ask your lender if they can "recast" your loan.  In this fashion, for a small fee with your current lender/servicer, you can ask for a lower monthly payment without extra closing or appraisal costs.

Also, apparently recent changes in banking regulations have severely restricted lender who use prepayment penalties...but ask anyway.

Source:  WSJ 10-2/3-2010, B8

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

No comments:

Post a Comment