Get Lower Payments or A Shorter Length With Lower Rates!


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As the mortgage rates have come crashing down, people have to pay out less every month and that leaves them with surplus funds. People tend to spend this surplus money by over indulging themselves and do not think of the future. Thus they remain constantly in debt, whereas they could easily have kept the monthly mortgage payments to the former level and reduced the life of the mortgage and their debt liability. The following are some options:

Lower Rates By Refinancing

The basic idea is that you should try to get out of debt as soon as possible. As such, if you can get a lower mortgage rate by refinancing, you will have to pay less every month. If you choose to keep the monthly payment at the same level as before, the period of the mortgage payments will naturally come down. Thus you can get out of debt much earlier than before.

The other advantage of reducing the period of the loan repayment is that the total interest that you will be paying will be a lot less and thus the house will ultimately cost considerably less than before.

Get Rid Of Interests

You should always try to eliminate interest payments as far as possible. You can even borrow more by keeping the mortgage payments at the same level as before. You should also try to pay off higher rate debt like credit cards or pay day loans.

You should try not to take the equity out of your house by refinancing. Efforts should also be made not to accumulate more short term debts. You should try to minimize credit card debt by using the excess money saved with reduced mortgage payments. By doing so, your equity will keep building up. You must always try to reduce your debt and try not to get into debt in the first place. If you are looking for mortgage, you should try to locate the lowest mortgage rates for your loan.

It is always a good idea to try to keep track of the current mortgage rates. If you find that you are paying 1% more than these mortgage rates, you should look for another lender to find out what your refinance loan should be. You will find that your mortgage rates will vary from the rates based on your current financial condition.

You can look at the above options and choose the one that you think would give you the lowest mortgage rates. Most people with credit problems go out and rack up more short-term debt. If you have excessive credit card debt use refinancing to reduce your mortgage payments and use the money saved toward reducing your credit card payments.

That way you keep your equity building up and develop the habits necessary to reduce your debt. A onetime reduction in your debt is not going to change the habits that got you into debt in the first place. So if you are looking for mortgage, try to find out the lower mortgage rates for your loan.


Sarah Dinkins is an Expert Loan Consultant at where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, car loans and other types of loans and financial products. In her website you can find more finance articles.


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