As the economy slows, many people are trying to stretch each dollar as far as they possibly can and for many people, their single largest bill each month is their monthly mortgage payment. Let's say for example that you have a decrease in income or have a substantial rise in debt and you are left in a situation where you can't refinance.
And maybe you have inquired of your lender whether or not you qualify for a loan modification and they told you that you didn't qualify for whatever reason.
Is there anything you can do to lower your monthly mortgage payment?
Your monthly mortgage payment is made up of PITI - Principal, Interest, Taxes and Insurance. The Principal and Interest part are what is really impacted when you refinance - and you don't need to refinance in order to save money on the Taxes and Insurance part of your monthly mortgage payment.
Francine recently did an excellent job of covering one thing you can do - find if it is possible to get your property taxes lowered. With the downturn in Real Estate values across the nation, many people are actually going to see a decrease in property taxes.
The other thing you can do to save money on your monthly mortgage insurance payment is to shop around and get multiple homeowners insurance quotes from companies that you know and trust. You might be surprised at how many different companies have different rates for essentially the same coverage on your home. There are also things that you can do to lower your home insurance such as add your autos to your policy, get a home alarm system installed, etc -- but the best opportunity by far is to shop around. You might be amazed at how easy it is to save money each month on your mortgage payment because you found a better deal on your homeowners insurance policy.
Justin McHood is a loan officer living in the Phoenix, Arizona area. You can find Justin on Facebook, Twitter, ActiveRain, Flickr or LinkedIn and he is happy to answer any mortgage-related questions that you may have.