A higher mortgage payment is surely going to take away a huge amount of your income each month and thus it will leave you with a lot less money to cover your monthly expenses. It is better to have a mortgage payment around 25 to 30 percent of your monthly income so that you are able to live your life without any stress. Here are some ways through which you can lower your monthly mortgage.
Extend the repayment duration:
One of the simplest ways to lower your monthly mortgage is to extend it for a longer period. If you extend your 20 or 30 year mortgage to 40 years, you will surely decrease your monthly payment since now you will have more time to pay.
Large down payments:
You can consider paying a huge down payment. It will decrease the amount you will be paying each month. It would be good to pay at least 20% upfront. If you aren’t in a hurry, consider saving some more money and paying more than the above mentioned percentage upfront. The more you pay in advance, the lower the mortgage will be.
Pay PMI upfront:
There will be an option for you to pay your PMI (Private Mortgage Insurance) upfront if you haven’t put 20% upfront. Take care of PMI right from the beginning so that you don’t have to pay any extra mortgage amount each year.
Rent out a part of your house:
It would be best to rent out some space if you can afford it. Having a tenant will surely reduce the cost of monthly mortgage you will be paying. Even if it is just $300 each month, it will help you a lot. It is one of the best options if you aren’t able to refinance or make use of any other options.
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