Average monthly mortgage payments have increased significantly in some states over recent years. If you are in such a state right now, I am happy to inform you that things could not be much worse. Most people do not realize how much money they are losing due to skyrocketing interest rates. Interest rates have been at historic lows, but the real question is: do you know your average monthly mortgage payment? Here is how you can find out.
The national average monthly mortgage payment is currently $1,884. That s exactly what your lender will send you each month. However, that is exactly $ 525 more a month than your national average. Mortgage payments especially are the lowest in Iowa, Indiana and Arkansas.
How does this impact you? If you are a first time home buyer, the news may not be good for you. The news may not be good for you if you have been a homeowner for several years. The fact is that if you are a homeowner, you may be paying an average monthly mortgage payment that is lower than you can afford.
The reason for this is that mortgage insurance premiums have risen steadily over the years, even as interest rates have stayed flat. You do not want to pay more than you have to for your mortgage. In this economy, the price of everything has increased but so have mortgage costs. Your lender is trying to limit foreclosures and they are counting on your willingness to stay in your home until your debts have been paid off. When they ask you about your current mortgage costs, most likely they are basing their question on the average monthly mortgage payment that you make.
The good news is that you do not have to make an average monthly mortgage payment anymore. If you are a homeowner, the first thing that you need to do is contact your lender and ask for a break on your mortgage. While it is true that the bank does not want to foreclose on your home, they want to keep you as a customer and believe that average mortgage payments will help to keep you as a customer. If you can show them that you have alternative plans, such as leaving your job to go to work full-time outside the home for a few months, they may be willing to give you a break. This is a great way to save money for a down payment or any other repairs needed on your new home.
Second, you need to understand how the bank measures your average monthly mortgage payments. Banks now use three different methods: the FICO score, the adjustable rate, and the current market value. If you have had a lot of foreclosures or a recent bankruptcy, these may cause adjustments in your credit scores. A little bit of adjustment is nothing compared to what you would save by refinancing, but it can make a big difference.
Last, it is not just your mortgage that you should be concerned about. Many homeowners also find out that the bank is requiring them to pay too much in monthly housing costs, which are higher than ever before. While the FHA will guarantee some level of housing financing for those that qualify, the cost of homeowner’s loans have increased so much that many homeowners cannot make the monthly payment, especially if they have found the cost of their mortgage to be more than their gross monthly income.
The most important thing that you can do if you are worried about the PMI is shop around for another lender. Even though the PMI cost has decreased over the years, competitive mortgage lenders are offering better rates and terms than ever before. Many of the new online lenders that have been created are willing to offer competitive rates to keep their business; just be sure that you are getting the best deal for you. You don’t want to deal with a company that isn’t going to honor its end of the bargain, so make sure that you know what the price will be upfront.