Taking the time for a mortgage checkup can lead to significant savings and peace of mind. This process involves reviewing your current mortgage situation and making adjustments where needed to maximize savings. Banks and other Lending Institutions mostly never explain the facts discussed below, so take note...

Let’s explore how you can benefit from a mortgage checkup and the steps involved in this important financial review.

When was the last time you looked closely at your mortgage? 

The answer might be that you haven’t done so since you signed the documents on closing day. Just like how you schedule regular checkups with your doctor or routine maintenance for your car, a mortgage checkup is essential for your financial health. It’s an opportunity to assess your current loan terms, interest rates, and overall financial goals.

We Offer a FREE 30 - 60 Minute consultation and also get a FREE Mortgage Payment Savings Analysis Report (see details below)

First, let’s discuss your current interest rate. Interest rates can fluctuate based on various economic factors. You may have a higher interest rate than what is currently available. By asking for a free mortgage checkup, you might find opportunities to refinance at a lower rate or adjusting the term of your loan, which could reduce your monthly payment and save you money every month. 

Next, consider your loan terms. Mortgages typically come with various terms, such as 15-year or 30-year loans. For instance, if you can afford higher monthly payments, switching to a 15-year mortgage could save you a substantial amount of money over the life of the loan. Conversely, if you need to reduce your monthly payments, you might explore extending your term to 30 years. At Star Mortgage, you can also get a customized flexible loan term from a 10-year loan to a 29-year loan, so you don't have to start over at 30 years, just pick up where you left off with your current higher payment loan. 

Depending on your financial situation, you might benefit from adjusting your mortgage term to fit your specific financial goals.  It’s essential to weigh the benefits and drawbacks of changing your loan term. We can guide you with the best option for your goals and financial needs.

Another important aspect to review is your equity. Home equity is the value of your home minus what you owe on your mortgage. If your home has appreciated in value since you purchased it, you may have built up significant equity. You can tap into this equity for various purposes, such as home improvements, debt consolidation, education expenses, vacation home purchase, retirement investment or any other purpose. Understanding your equity can help you make informed decisions about refinancing or taking out a home equity line of credit.

You should also evaluate your current financial situation. Changes in your income or expenses can affect your ability to make mortgage payments comfortably. If you’ve experienced a job change, received a raise, or faced unexpected expenses, it’s wise to reassess your mortgage in light of these changes. You may want to explore options for adjusting your payment plan or refinancing to accommodate your current financial situation for the better. Or maybe you want to invest some of your equity for retirement at a higher rate of return. Everyone has a different need and different goals, so speaking with a Licensed Mortgage Professional will help you gather the information you need to make informed decisions.

Consider any changes in your long-term financial goals. Have your priorities shifted since you first obtained your mortgage? Perhaps you are planning to start a family, send your kids to college, or retire soon. Understanding how your changing circumstances affect your home and mortgage can help guide your decisions. You might find that a different mortgage product is more suitable for your future plans.

Another factor to consider is private mortgage insurance (PMI). If you put less than 20% down when you purchased your home, you may be paying PMI, an additional monthly fee that protects the lender if you default on your loan. Once you reach 20% equity in your home, you can request to have this insurance removed. If you haven’t checked on your PMI status recently, it’s a good idea to review this aspect of your mortgage. Eliminating PMI can result in a significant savings boost. 

Mortgage Insurance on Government Loans like an FHA Loan generally will stay in place and you will be making monthly Mortgage Insurance Payments for the life of the loan, even if you refinance. So, here is the best way to eliminate the Monthly Mortgage Insurance Premium on your FHA loan; Refinance to a Conventional Loan with no monthly Mortgage Insurance Payment, which could save you thousands of dollars over the life of the loan. We can calculate your total savings by showing you how to eliminate the monthly Mortgage Insurance Payment. Call us for advice or email Advice@StarMortgage.com

Additionally, make sure to assess your closing costs. When refinancing, there are often costs associated with the transaction. These can include appraisal fees, title insurance, and other closing costs, which can also be rolled into your new loan. It’s essential to evaluate whether the potential savings from a lower interest rate or different loan terms outweigh these costs. Having a clear understanding of all expenses involved will help you make an informed decision. We can breakdown all the details in writing so that you can make an informed decision.

If you are considering refinancing, keep in mind that the process is not as daunting as it may seem. It is a lot easier to refinance an existing loan because you have an established payment history.  So, it is just a matter of gathering necessary documents, such as proof of income, tax return, and information about your current mortgage, will streamline the process. Your Licensed Mortgage Professional at Star Mortgage can prepare a written Mortgage Savings Analysis and guide you on the required documentation and help you understand the steps involved. 

It’s also important to ask yourself about your long-term plans in terms of homeownership. Do you plan to stay in your home for many more years, or are you considering selling in the next few years? Your answer can significantly affect whether refinancing makes sense for you. If you are likely to sell soon, the costs associated with refinancing may not be worth it. However, if you plan to stay long-term, taking advantage of a lower rate could yield substantial savings. If you could save $300.00 to $500.00 a month, you could possibility breakeven with the costs involved in refinancing in a very short period of time. And... maybe utilize the monthly savings to improve the value of your home.

Throughout this quick process, communication with your Licensed Mortgage Professional will make it easy. They can provide personalized insights based on your unique financial situation and goals while helping you with a financial plan. A thorough discussion can help clarify your options and allow you to make informed decisions. 

Remember, your Licensed Mortgage Professional can also assist in projecting potential savings in writing and calculating how changes to your mortgage may impact your overall financial health so you will know exactly what your savings are.

You may also want to consider the possibility of adjusting your payment schedule. Some homeowners find that making bi-weekly payments instead of monthly ones can help pay down the principal balance faster, leading to interest savings over the life of the loan. It’s a useful strategy for those looking to maximize savings while paying off their mortgage sooner. 

Star Mortgage will also provide you with a free Mortgage Calculator that shows you how much you can save by just paying a few extra dollars towards the principal each month in addition to your regular payment. The savings could reduce the total number of payments substantially for even greater savings. 

Ask for your free Mortgage Payment Saving Analysis and Extra Payment Worksheet by calling 508 941-5616 or just send a text message with your questions.

In summary, a mortgage checkup can uncover opportunities for savings and adjustments that align with your financial goals. By reviewing your interest rate, loan terms, equity, and overall financial situation, you can gain valuable insights into your mortgage and make informed decisions. Open communication with your Licensed Mortgage Professional is essential in guiding you through this process. Also, be sure to ask your Loan Officer if they are a Licensed Mortgage Professional that is held to a higher standard of ethics.

If you’re ready to take the next step and evaluate your mortgage, I encourage you to reach out. Together, we can explore your specific needs and develop a plan to maximize your savings. Don’t wait too long—taking action now can put you on a path toward greater financial security.