Lowering Your MN Housing Payment

August 7, 2012

Your current mortgage on your house may be a fixed rate but that does not mean that you cannot do things to change or lower it to help you save some additional cash.

Whether your home you own is in St Louis Park, Minneapolis, Minnetonka or any other city, no matter what property type, if it is a condo or a single family home, you can contact a lender to check out your options.

Some of the things that you can do to are the following:

Check Refi Rates- Interest rates today are at historic lows. If you currently have a rate around 5 or 6 percent, you are at least 2% above what rates are today. If you plan to stay in your Minneapolis home for a while one of the best ways to lower your monthly payment is to refinance your loan now. Since you have a full 2% to work with, there might even be options to do this without having to pay any money up front.

Improve your credit score- The better your credit score is, the better mortgage rate you will end up with. Don’t be inconsistent when paying your bills. Always pay your bills on time and every month. Pay credit card bills off in full each month. If you are carrying balances, make sure you work hard at paying these down so that when you do refinance that MN home you own, you get the best credit rate possible.

Shop Around- Different brokers have different financing plans. Do your legwork, talk to a number of different MN lenders and compare the best rates to save you thousands. Get referrals from people you know and trust and find the best available deal.

Take a shorter term- The shorter your term on your mortgage is, the less money you will pay in the long run. 15-year-mortgages hold lower interest rates and will help you pay off your loan much faster with less interest.

Get rid of PMI- If you did not put at least 20% down on your MN home, you probably pay private mortgage insurance knows as PMI. PMI protects the lender from the MN homebuyer defaulting on their loan. Mortgages that were created on homes sold after 1999 have PMI. If it is a conventional loan you have, once you hit 22% you can get rid of PMI. One other way is to do renovations to your home. If you update your home and get a new appraisal this can also increase your equity eliminating PMI.