The snow is melting (though let’s be honest, we know we could see another snowstorm yet this year), and that means spring is around the corner.
And while you’re dusting the ceiling fans and mopping the floors, you should get your mortgage in top shape as well. Here are a few ways you can potentially save money on your monthly payments, speed up the time it takes to pay your loan off, and reduce the amount you spend on interest over the life of your loan.
Refinance Your Home
How’s your home loan interest rate looking? If it’s been a while since you’ve refinanced, there’s a chance you could get a lower rate. See how your rate compares to current rates and talk to your lender about whether a refinance would benefit you.
See if You Can Drop PMI Payments
If you have been paying private mortgage insurance, or PMI, as a part of your mortgage payments, you should know that once your loan-to-value ratio (or LTV) reaches about 80%, you may not need to pay it anymore. You should also know that even if your LTV reaches 80% or lower, the PMI payments may not drop off automatically.
There are two ways your LTV can go down – through making your regular payments or through increasing the value of your home. If you’ve made home improvements over the course of the last year, it may have helped increase your home value.
And if you are able to drop your PMI? Rather than just taking the reduced payments each month (and that’s still a great option too), consider continuing to pay the same dollar amount and having that amount of money go toward paying down your principal faster instead.
Again, ask your lender if this is an option for you!
Use Your Tax Refund Wisely
Expecting a tax refund this year? Consider putting it toward your mortgage. Making just one extra mortgage payment each year can provide you with significant savings in interest and in the amount of time it takes to pay off your loan.
All loans subject to credit approval. Interest rates based upon credit score and other factors. IncredibleBank is an Equal Housing Lender, NMLS 470126.