Lower Your Mortgage Interest Rate With This Trick

If you own your own home, but paid less than 20% down, you may be able to effectively lower your interest rate if you haven't taken advantage of this one thing you may be able to do. To be able to get a mortgage with a very low down payment, you would need to get PMI.

What is PMI? PMI is Private Mortgage Insurance. This protects your lender in case you default on your loan to help your lender recoup expenses.

If you are paying PMI, and you currently have equity equal to 20% or more of the amount you borrowed, you should be able to stop paying Private Mortgage Insurance. You can then put the money you save towards the principle of your loan, and end up paying off your mortgage earlier.

Alternatively, you could spend that money someone else in your budget. After all, we can all use more money.

4% Interest Mortgage Consolidation.

According to bankrate.com interest rates for 15 year fixed mortgages are currently 4.0% which is very low. If your mortgage is at a higher rate than this, or if you have a variable rate mortgage, now could be a very good time to consolidate.

Consolidating your loans can save you a whole lot of money. It is always best to pay the least amount of interest possible. The two ways of doing this is by paying your loan off more quickly or by getting a lower interest rate.

Historically, mortgage interest rates have been much higher than they are today. These rates will only last while the economy is still weak. As the economy is currently in recovery, interest rates are only going to go up.

Don't wait until it is too late to take advantage of these low interest rates. If you do, it may end up costing you money.