How to Reduce Your Monthly Mortgage Payment

If you got your home with a conventional loan and you purchased the house with less than 20% down on your loan, then you have mortgage insurance. This mortgage insurance can add a fair amount to your monthly payment. I know— I’ve experienced mortgage insurance adding $90 a month to my mortgage payment which equals $1100 a year. That’s not a small chunk of change!

If you bought your house two years ago or have made some significant improvements, you can reach out to your bank and ask for an appraisal to remove the mortgage insurance. They will not offer this to you! In fact, your mortgage insurance will not drop off on its own until you have at least 80% value in the home. But, if you call and ask for an appraisal to have mortgage insurance removed, they will provide you with the opportunity to do this for a small fee.

If it shows that with your current mortgage you have more than 20% equity in your home when that appraised value comes back, you can get that mortgage insurance removed from your payment.

Need more guidance? I’d love to help. Feel free to reach out for more mortgage-related information.