Nothing can be as worse as having a look at your mortgage statement and seeing sentences like “360 payments: Payoff Date 2046.” If you have taken out loan in 2016, it means the loan will be settled in 2046. But you surely don’t want it to last for 3 decades. Here are a few ways through which you can lower the principal mortgage on your home with loan modification options.
A 3o-year mortgage is something normal. You can consider changing it to 15 years or 20 years if possible. Some people think that it would double the payment. However, this isn’t the case. Although you will have to make huge payments, it isn’t double. The remaining price and interest amount will change and thus you may feel as if the amount has been doubled.
Refinance with a lower interest rate:
Did you take the loan when the interest rate was 5%–6%? If yes, you can reduce your interest ratio. If you have a good credit history and lower debt income ratio, you need to talk to your lender about refinancing the mortgage loan in 30 years and lower the interest rate. If it happens, your monthly payments will drop down.
Mortgage comprises four major factors which are: taxes, principle, interest and insurance. The house tax is based on the worth of your home. If you think that your house is somewhat overvalued, challenge it to the local authorities. If it turns out to be in your favor, the text amount will drop down and thus your monthly payment will also reduce.
You must also consider this option. For example, if you need to pay $500 a month, you can pay $250 once every two weeks. It will be a lot easier for you.
We are the loan modification experts to help you in this regard. Visit our website www.loanmoddepot.com today and share your problem with us. We will surely guide you to the right path to reduce your stress.