How to Successfully lower your Mortgage payment in Rolling Hills Estates

Most homeowners are seeking creative ways to lower the mortgage payment but many of you fail to look at your first line of defense – property taxes, homeowners insurance and deductibles.

Just like your auto insurance, everyone can lower his or her homeowners insurance by increasing his or her deductible, thereby saving money each month on their mortgage payment. It’s not the best solution for everyone but tough times require tough decisions. Many homeowners pay their homeowners insurance into a escrow account that’s a part of your monthly mortgage payment; by lowering your homeowners insurance your required escrow payment will change, thereby lowering the amount you must pay.

Some homeowners also add riders onto their policies and years later forget to review for changes. You may not even need the riders anymore and don’t think the insurance agent will remind you that you could be saving money. Another area to review is you’re Property Taxes. Home values plunged over the last few years and your property taxes should have been re-assessed. Property taxes are based upon the market value of your home – what it would sell for right now. If the value of your home decreases then your property taxes should follow suit. And many homeowners have stampeded their assessor’s office, especially during the last year to demand hearings about their taxes.

Normally a county assessor will come around to review your home and prepare comparisons in your neighborhood – or that’s the way it’s supposed to work. But it’s really up to the homeowner to make sure they are properly assessed the fair market value. Your property assessment is recorded on the books and your tax amount is prepared and forwarded to you and the mortgage lender. The mortgage lender calculates how much you should pay into escrow each month and calculates your monthly mortgage payment.

If your property taxes are lower than your monthly mortgage amount should be lower each month as well. This is yet another way to lower your monthly mortgage payment.