Mortgage planners know the financing market in detail. They could assist you in evaluating your financial strengths and even dispense valuable professional guidance so you could get the financing you need without much hassle. Most importantly, they can break down the details of a loan and help you understand the deal on the table.
If you want to apply for a mortgage in West Jordan, matters that touch on mortgage insurance are likely to be on top of your mind. Insurance rates typically range between 0.5% and 1% of the total loan amount and this can be a considerable amount of money. City Creek Mortgage shares some of the steps involved in lowering these rates.
Acquire 20% Property Equity
When your property equity is at 20% of your outstanding mortgage balance, then you qualify for a drop in mortgage insurance. Traditionally, this could be achieved by paying a bigger down payment. Currently, you could also choose to work on projects that can increase the overall value of your home. The idea is to increase the difference between the value of a property and the loan balance.
Get an Appraisal
A property appraisal will prove that your home hasn’t depreciated. In case the assessment indicates an increase in value, then the report you get could work to your advantage. It could get the insurance rates decreased without forcing you to pay down the loan further.
Issue a Written Request
It is important to ensure that your application to have your mortgage insurance rates lowered is documented. Money matters are delicate, especially if they touch on something as sensitive as housing. The document you write should be addressed to your loan provider informing him to start the process of getting your rates lowered. Your loan officer could help ensure a speedy and stress-free process.
Mortgage planners could also inform you of the various alternatives you could consider ensuring that the balance of your mortgage is lesser than 80% of the value of your property. They could also show you how to reduce your mortgage payment without refinance. With a bit of guidance, you could quickly save a considerable amount of money.