Five Ways To Lower Your Mortgage Payment

There are two kinds of homebuyers: those for whom the sales price is the main consideration, and those who are mostly concerned with what it will cost them per month. If you've already bought a house, there isn't anything you can do about the sales price. But there may be ways to lower what you shell out monthly.
Want to lower your mortgage payment? Here are a few ways to do it.
Get Rid Of Your Private Mortgage Insurance (PMI)


"PMI is the lender's (bank's) protection in the event that you default on your primary mortgage and no longer make payments and the home ends up going into foreclosure," said Investopedia. "If the borrower is unable to put down 20 percent or more, or does not have the required funds to do so, then lenders will typically look at the loan as a riskier investment for their balance sheet and will require a PMI payment from the borrower."
That means you end up paying a premium above and beyond your principal, interest, and homeowner's insurance—currently about 1.35 percent. On a $200,000 loan, we're talking about $2,350 a year. Remove your PMI, and that's $195 a month in your pocket.
If house prices have been rising in your area, you've been in your home for at least two years, and you think your equity in your home has increased, talk to your lender.
Lower Your PMI
If you can't yet get rid of your PMI, you may be able to lower it.
In January 2015, the government announced lower PMI rates for buyers taking out Federal Housing Administration (FHA) loans.
"This change is expected to save more than two million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years, according to a news release from the U.S. Department of Housing and Urban Development," said Credit.com. "Hundreds of dollars in savings makes a big difference in the finances for first-time homebuyers who couldn't afford to make a 20 percent down payment."
New homebuyers can take advantage of the lowered PMI; existing homeowners who want to lower their PMI will need to refinance.
Refinancing
Lowering your PMI is far from the only advantage of refinancing. Taking advantage of low rates means you could save substantial dollars on your mortgage payment.
"Depending on loan size, a rate reduction of as little as a half point can save some real money," said Fox Business.
If you are currently paying on a 15-year mortgage, switching to a 30-year loan can save you hundreds of dollars monthly. Check out this comparison calculator to see your particular scenario.
If you're in an area that is declining and can't refinance by traditional means, check out a HARP refinance. "The Home Affordable Refinance Program (HARP) through the U.S government may be the answer to your financial woes.
According to the HARP fact sheet, if you don't qualify for a conventional refinance, a program through HARP may help lower your mortgage payments through refinancing to a lower rate or a more stable mortgage product," they said
Check out the HARP website for qualification information.
Buy Down Your Rate

If you're just buying a home, your lender may have already talked to you about buying down your rate. If you can swing it, a little more money upfront for a lower interest rate can save you money. Sometimes, your lender might also be able to help you buy down you rate.
"You can typically purchase one discount point for one percent of the cost of your mortgage, with most lenders limiting you to the purchase of three points," according to U.S. Mortgage Calculator. "Each point will reduce your rate by 0.125 to 0.25 percent, for the life of your loan. That can mean some serious savings and a modest reduction in your monthly payment."
Monthly principal and interest on a $300,000 mortgage at a 4.27 percent conventional rate is $1479.34. Buying down the rate by one point to 4.02 percent lowers the payment to and the payment to $1435.70.
Get a Tenant
Have an extra room, preferably one in a private location with its own entry? Take on a roommate or a border and collect some rent.
According to US News, renting is an effective way to solve a cash flow problem. "When people can't afford to buy homes, they rent. More demand means you can get more for your spare room," they said.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Is now the time to refinance your mortgage?

Interest rates on home loans are historically low. That means now is the time to dig out your mortgage loan paperwork and consider whether refinancing is right for you.
Five years ago, the government started injecting trillions of dollars into the U.S. economy. Conventional wisdom suggested that rising interest rates were soon to follow. Some even predicted the collapse of the dollar and hyper-inflation. Instead, inflation is down, the dollar is the strongest it's been in 10 years, and interest rates have fallen to the lowest levels in decades.

When refinancing, you take out a new, lower-interest loan to pay off the old one. Here's how to find out whether it's a good option:
First, check the current interest rate on your mortgage loan. Let's assume you have a balance of $200,000, with monthly principal and interest payments of $1,013 at a rate of 4.5%.
Next, shop around. Call two or three mortgage brokers and find out the interest rate you can obtain on a new loan. They'll ask for your household income, the value of your house and the current balance on your mortgage. If you don't know how much your home is worth, contact your local property tax office for an assessed value.
Ask the brokers to give you the interest rate and payments on a mortgage similar to the number of years left on your current loan. Also ask about a shorter-term loan, which usually has a lower interest rate.
When shopping for a new mortgage, you may be tempted to reduce your payments even more by lengthening the term of your new loan. While the benefit is more spending money per month, you can end up paying more in interest. I strongly suggest obtaining a new mortgage that is equal to or less than the number of years remaining on your current loan.
Then, get an estimate of all other costs, including title insurance, an appraisal and a closing fee. Lenders sometimes charge "points," or origination fees, which are also part of your closing costs. One point equals 1% of the loan's value. Mortgages described as "no-cost" or "zero points" do not carry this cost, but the interest rate may be higher.
Now, calculate how long it will take to recover your refinancing costs. Getting a new loan makes financial sense if you are able to break even soon.
Let's assume you find out you can obtain a new loan with a similar term at 3.65%. The monthly payments are $915, and the closing costs are $1,900. The new payment is $98 less than your current $1,013. Divide the $1,900 closing cost by the $98 monthly savings. The answer, 19, is your break-even point, the number of months you need to keep the house to recoup the costs.
If your break-even point is 24 months or more, or if you intend to sell your home in the next two years, refinancing may not make sense. No one knows what curves life may toss us, and looking two years ahead is my comfort level.
Remember that a lower rate doesn't automatically mean refinancing is in your best interest. How much you save monthly, your closing costs and how long you plan to live in your home are key variables in determining whether you should refinance your mortgage.

Mortgage lenders are getting creative to keep rates low, but here’s why homebuyers should beware

Online comparison shopping is changing everything from how we buy a new television set to how we select a mortgage, and it’s causing some mortgage lenders to get creative in order to compete.
“Lenders are stripping away features of mortgages to get their rates lower,” says Steve Pipkey, co-founder of Spin Mortgage.
Consumers have always been keen on scoring a low mortgage rate, but the ease with which they can comparison shop via their computers, smartphones and tablets has created an even greater fixation on the headline number, above all else.

“The majority of our phone calls are about rates these days, whereas before it might have been more about, ’How can I get my money out fast?’ or ’What’s the quickest way to refinance my home?”’ says Bob Aggarwal, president of Canadalend.com.
Brokers say the push for low rates is not a bad thing, but it has led to some confusion. While mortgage contracts used to be fairly standardized, many of them now contain various conditions and clauses, and in some cases it’s hard for consumers to decipher the difference between various products.
“If you’re online trying to figure out what the rates are and why, good luck to you,” says Pipkey. “Some banks and brokers are better at disclosing the fine print than others.”
In some instances, in exchange for a lower rate, lenders are adding steeper penalties for paying off a mortgage early. By chasing those five extra basis points, buyers put themselves at risk of having to pay thousands more in penalties later on down the road, says Pipkey.
Prepayment privileges also allow borrowers to pay more than their regular mortgage payments without penalty in order to get out of debt faster. But some lenders may reduce how much money borrowers can repay in exchange for a rate reduction.
Pipkey says it’s not surprising that lenders are lowering their rates given how competitive the mortgage market has become.
“Mortgage originations are down and lenders are fighting for market share in the face of compressing margins,” he said.
Bill Whyte, senior vice-president and chief of member services at Meridian Credit Union, says it’s hard to attract clients unless you offer a competitive rate that will grab the attention of borrowers.
The credit union recently offered, for a limited time, an 18-month mortgage for an eye-grabbing 1.49 per cent.
“To our knowledge, when we offered it, 1.49 was the lowest in Canadian history,” said Whyte.
“It drove a ton of traffic to our contact centre, our website and our branches.”
However, many borrowers who phoned to discuss the offer ended up going for a five-year mortgage at a slightly higher rate instead, he said.
“In a lot of cases the five-year rate fit them better, and some of that initial interest in 18-month was diverted to five-year,” he said, adding that many Canadian borrowers are looking to lock in at today’s rock-bottom interest rates before they climb higher.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Debt: Paying off debt

The basics of debt reduction are simple: Cut down on your variable spending and put the extra money toward your debt payments. But outside of fixed monthly bills such as housing or car payments, you probably don't have a precise idea of how you spend most of your money.

1. Figure out where your money goes. If you want to get your debt under control, start by figuring out your spending patterns and identifying unnecessary expenses. For one month, write down every cent you spend, including that $2 cup of coffee or a $4 magazine. That will clarify how much of your spending is fixed and how much is variable (and hence easier to curb).

2. Cut out the extras. Tally the expenses on the list and compare the sum to your monthly income. If it's less than what you earn, use the extra money as your debt payment. If it exceeds your income, you need to cut back on the variables.
3. Lower your fixed expenses. Reining in discretionary spending for a few months goes a long way toward tackling debt. But if that's not enough, try to reduce your fixed expenses. Take steps to lower your household bills; refinance your mortgage to get a lower interest rate; or, if you have a good payment history, ask your credit card company to lower the interest rate you're charged.
4. Try to boost your income. Consider whether there's any way to boost your take-home pay. If you get a big tax refund every year, that means you're having too much withheld from your paycheck. If that's the case, you can reduce your withholding by changing your W-4 at work.
5. Make a list of your debt. Next, make a list of all your debt obligations and the interest you're charged for each. Put them in order of interest rate, from highest to lowest.
6. Transfer high-interest balances. You might consider moving some of your high-interest credit-card balances to a card with a lower interest rate. But read the fine print on any invitation to transfer balances. Sometimes such low-interest-rate offers are only in effect for short periods of time, after which the rate skyrockets. What's more, consolidating your debt on one card may lower your credit score if your debt-to-available-credit ratio worsens.
7. Pay off the highest rate first. Once you determine the maximum amount you can pay off each month, pay down the debt with the highest interest rate first -- that usually means your credit-card balance -- while paying at least the minimum monthly amount due on all other revolving bills.
8. Move down the list. Once the debt with the highest rate is wiped out, put your money toward paying the debt with the next-highest rate. One exception: If you have a credit card with a low teaser rate that will go up after a fixed amount of time, strive to eliminate that balance before the low rate expires.

Ways to Lower Your Mortgage Payment

Talk of lower mortgage payments is usually associated with helping struggling homeowners get out of bad home loans or avoid foreclosure. While government-sponsored mortgage assistance programs are available to help you secure a lower mortgage payment, you can exercise other options that utilize the same, or similar, tactics.

Get a Lower Interest Rate

A lower interest rate usually results in a lower mortgage payment. According to the Fair Issac Corporation, a $500,000 fixed-rate 30-year loan with an interest rate of 5.625 percent results in a monthly payment of $2,878. Lower the rate to 4.036 percent, and you'll pay $2,397 each month. If you are current on your mortgage but want to take advantage of lower rates, you can contact your lender about a mortgage refinance. Refinancing allows homeowners to take out a new loan, with more favorable terms, for the principal balance on their current loan. If your credit is sound and you have considerable equity in your home, you might be able to take out a larger refinanced loan and use the excess cash for other purposes. If you are struggling to make your mortgage payment, you might be able to get a lower interest rate through the Home Affordable Modification Program. Through HAMP, the lender looks to bring your monthly mortgage payment down to no more than 31 percent of your monthly gross income. Lenders first attempt to reach this threshold by reducing the interest rate to as low as 2 percent.

Extend the Loan Term

If a 2 percent interest rate does not produce a monthly payment equal to or less than 31 percent of your income, the lender might extend the loan term under HAMP. You can seek this option, outside of a government-sponsored hardship program, even if you are not experiencing financial hardship. While many financial experts, such as radio host Dave Ramsey, advocate shorter mortgages so you can be debt-free faster, a longer loan results in a lower payment. As Ramsey points out, the payment on a 15-year fixed-rate $225,000 mortgage with 6 percent interest is $1,899, while a 30-year note on the same mortgage produces a payment of $1,349.

Ask For Forgiveness

If your economic situation is dire, the lender might consider forgiving, or at least deferring, a portion of your loan's principal balance. HAMP, for instance, offers this option, according to the Making Home Affordable website. If the lender forgives a portion of your loan, the amount of your mortgage is reduced. As a result, you'll likely see a lower monthly payment. While a deferral can result in a lower payment, the lender will usually expect you to pay this money back when your financial situation improves. This can be in the form of additional monthly payments or in a lump sum at the end of the loan term.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

HARP 2.0 Can Lower Your Mortgage Payments

The housing market financially harmed many home buyers several years ago, and unfortunately what buyers paid for a house then is likely less valuable in today's market. If you find yourself trying to refinance and you can't get a loan due to your home's value being less than what you owe on the mortgage, the Home Affordable Refinance Program (HARP) was created for people who have found themselves dealing with this particular issue.

How You Can Qualify for HARP

Requirement	Description
1. Must be Freddie Mac or Fannie Mae loan	Both Freddie Mac and Fannie Mae have an online tool that lets you look up your current loan information to determine if your loan qualifies.
2. Must be first refinance with HARP	The only exception to the rule is if you refinanced prior to May 31, 2009 using Fannie Mae.
3. Must have LTV Ratio over 80%	You can only sign up for a HARP loan if you owe more than 80% of what the home is worth. This percentage is the loan-to-value ratio (LTV).
4. Must have qualified Credit Score	You must have a credit score that is good enough to qualify for a typical mortgage. In most cases, a credit score of 680 and higher should be sufficient enough to qualify you.
5. Must be current on payments	You must have a good payment history for the last 12 months. The most important factor is that you haven't been more than 30 days late on your mortgage within the previous year.

Getting Started

1. Obtain your latest credit scores
Some websites like annualcreditreport.com offer a free credit score each year. You are legally allowed one free credit report every year by each of the three credit bureaus. Determine your eligibility and save yourself time by running your report before you talk to lenders. Each lender requires different credit scores, but if your middle score is at least 680, you can usually lower your interest rate.
2. Gather all of the information that will be required
Refer to our "Mortgage Application Checklist" article to see what information lenders will need to complete your application, and out " What Documents Are Required for a Home Loan?" article to see what documentation you should gather as well. Preparing ahead of time ensures that your mortgage approval process will be quick, with significantly fewer delays.
3. Call your current mortgage company
See what rate and terms would be available to you for a HARP refinance through your current lender. Keep in mind that your lender may not have the best rates available.
4. Shop around with three lenders before you choose one
Refer to our "How to Choose a Mortgage Lender" article for some in depth insight to help with your search. Finding a lender who is offering you an interest rate that is a fraction of a percent lower than the others and who charges you less in fees can substantially reduce your monthly payments further that what you would already be saving through the HARP program.

HARP is here to Help

If you find yourself paying too much for your mortgage, or you received a high interest rate on your loan and have a loan-to-value ratio (LTV) that is more than 80%, HARP can you greatly reduce your payments and leave you more satisfied with your loan. HARP is a wonderful option for people who are paying too much for loans they received several years ago when the housing market couldn't offer the advantages that they have now.
Take note, that the HARP program is only available for a limited time. Unless directed by the FHFA, Fannie Mae and Freddie Mac to further extend the HARP program, it is set to expire on December 31^st, 2015. There have been no announcements on whether or not there will be an extension to date, so it is important that you take advantage of this opportunity and refinance before the deadline.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

6 Ways to Lower Your Mortgage Bill

Before moving into a cheaper house, there are some things you can do to cut that big mortgage obligation. Most mortgage payments are made up of four parts: principle, interest, taxes and (homeowners) insurance. Lowering any one or more of these of components is worth considering.
Refinance at a Lower Interest Rate
Sometimes it's better to refinance your loan at a lower rate -- even if your monthly payment is higher -- in order to cut the amount of money you will ultimately pay the bank.
You can also restructure the loan from a 30-year to a 15-year. Your monthly payment will be higher, but you'll cut the total number of years of making payments.
"This will save money in the long run," said Holden Lewis, senior mortgage analyst at Bankrate.com in Palm Beach Gardens, Florida.

Shop Around for Homeowners Insurance
"It's a good idea to periodically shop around for a lower premium," Lewis said.
He also mentioned making some improvements to your home that could make you eligible for a discount. For example, homes in hurricane-prone areas can be reinforced with special hurricane-resistant glass and roof reinforcements to better protect the home and qualify for a lower quote.
Grieve Your Tax Bill
You can do it yourself or hire a company to petition your town for a lower tax assessment.
Make an Extra Mortgage Payment Each Year
According to Lewis, if you take one-twelfth of the principle and interest portion and add that to each monthly payment, you'll be making an extra payment every year which will help reduce the total number of years of the mortgage.
Recast Your Mortgage 
Rich Zito, co-founder of Flynn Zito Capital Management in Garden City, New York says "If you like your bank, you can ask to recast your loan at a lower rate." He said it depends on the bank and other factors, but it's worth looking into.
Eliminate PMI Insurance 
If your original down payment was less than 20%, you've probably paid PMI insurance. "But if you have more than 20% equity in the home, you no longer need PMI insurance, and you can petition the bank to eliminate it," Zito said.



Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE