Good Lifestyle

Housing costs are a first line element on practically all domestic budget - In fact, the average American owner coarsely spends A quarter of their income On their mortgage, according to a recent report by Realtor.com. This is why, if your mortgage payments have put You In terrible straits, you are certainly not alone. The good news? Financial experts say that there are several ways to effectively reduce costs and launch hidden fees at the sidewalk. Read the rest to learn how to reduce your mortgage payments and finally get control of your finances.

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According to a recent Investigation by TD Bank , 80% of respondents of the Z generation who have their own house dropped less than 20% for a deposit. This is also true of 77% of millennials, 60% of generation X and 44% of baby boomers.

However, if you can afford, one of the best ways to maintain your low monthly mortgage costs is to refer a larger deposit on capital, reducing the total amount you need to the bank.

"This will reduce the amount of the balance due to the bank, as will reduce the amount accumulated for interest," explains Doug Greene , the owner and operator of Signature properties . "Even small quantities could go very far, because mortgages tend to last between 20 and 30 years."

Modifying your payment calendar can also help you shave money from your mortgage payments.

"Traditionally, you would make your payment in the first week of this month," notes Green. However, he shares that some lenders will allow you to pay your mortgage twice a month, three times a month, or even four times a month (once a week).

"When you increase the amount of payments, you end up reducing the loan balance faster, and therefore less interest is accumulated. Not only does this reduced your monthly payment, but it can also shave years of the total duration of Your loan, "he says.

In relation: 10 American cities with the most houses of less than $ 200,000, the new data show .

The refinancing of your mortgage at a lower rate is another way of paying less for your home as a whole.

"When you refinance, you mainly replace your current mortgage with a new one that has more favorable terms," ​​explains Michael Fote , an expert in finance and the founder of Cite the goat . "Before looking at refinancing, make sure your credit rating is in perfect condition. As a rule, if you have built a good credit history and improved your score since it has taken the mortgage, you will get lower interest rates. ""

Greene notes that there is a catch: "Interest rates have been crawling for a few years."

However, according to Internal business community ,, Prices have recently started to decrease - You may be able to conclude a better deal by watching the rates closely and hitting at the right time. You can compare interest rates using online mortgage tools found on Nerdwallet or the Consumer financial protection office .

"When you ask for a mortgage or refinance your property, there are a lot of additional costs, including request costs, assessment costs, lawyers, title and insurance search costs, the subscription fees, etc. ", explains Claire Flynn , main content editor for online mortgage broker Mojo mortgages . "On average, this can cost between three and six percent of the total amount of the loan." AE0FCC31AE342FD3A1346EBB1F342FCB

"Thus, since the average price of houses in America is $ 412,000, three to six percent of this amounts to $ 12,360 at $ 24,740," she adds. "Therefore, if you can afford, you should consider paying additional costs in advance to reduce your overall mortgage balance."

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Greene says that another way to reduce your monthly mortgage payments is to change the duration of your loan. This is a good option if you have trouble having immediate cash flows, but it should be noted that you will pay more generally due to interest payments.

"If you have a lot of equity in your home, you may be able to convert a loan from 15 to 20 years to a new 30-year loan, which would reduce monthly payment," he said Better life.

Flynn Next recommends using all financial manures to move forward on your mortgage payments, ultimately to reduce your total balance and reduce your monthly payments or shorten the length of the loan.

"If your mortgage agreement allows it, you can also consider using any unexpected income to reimburse your mortgage. Examples include tax reimbursements, work bonuses, inheritance, etc. Pay your mortgage more quickly" , she says.

In relation: How to reimburse your mortgage early, say the experts in finance .

Each month, part of your mortgage payment goes in a whole account and is used to pay things like insurance and property taxes.

"Each year, your lender will revise your whole account and determine if more or less money is necessary to finance this," explains Greene. "The whole account is used for other payments as part of your mortgage, but if you choose to ignore an additional payment each year, it can increase your monthly rate. You can call your bank today and Ask this question or connect and see what your whole account looks like. "

Private mortgage insurance (PMI) is another cost that you may not notice in your mortgage payment - and Greene says you may be able to save while paying attention to the quantity you really need.

"PMI is added to your loan when you buy your home for the first time and write an amount lower than the standard (20% deposit). Many people forget that they pay this every month, but once your capital In the house supports a position more than 20%, you can call or write a letter to remove PMI from your loan.