Mortgage Payment Woes…and Solutions

Has your mortgage payment increased lately? The increase could come from a number of factors and there may be something you can do about it. Read this article before you cut your next check.

Let’s Investigate

Typically, the total you pay toward the principal and interest should remain the same throughout the life of the mortgage (though the ratio of how much goes toward principal and toward interest will change), according to Zillow.

However, adjustable rate mortgages are the exception to this rule.

This type of mortgage allows lenders to change the interest rate periodically, but keep in mind they’re not as common as they once were.

If your principal and interest aren’t the culprits, it could be one of these guys:

Property taxes — Your property taxes may have gone up. Contact your county and city to find your local tax rate. If taxes are the culprit, there’s little you can do other than have your property reassessed.

Insurance payments — If it isn’t taxes, consider your insurance payments. Like principal and interest, private mortgage insurance premiums generally don’t change after your loan closes, according to Zillow.

It Never Hurts to Ask for a Discount

One of the most lucrative discounts is the home/auto bundle. You can save up to 20 percent on your premiums by purchasing your home and car insurance from the same provider. How convenient is that? You also can score price breaks of 10 percent or more for having a monitored home security system—which could come in handy, although we hope it never has to.

Many providers give discounts if no one in the home smokes; that’s because it lowers the fire risk—while keeping your lungs clean.

Discounts vary by provider, so find out whether you’re receiving every price break available.

Always

Monitor your payments and know what you’re paying and why. If you follow these tips, you should have nothing to worry about.