4 genius ways to cut your mortgage costs, even as inflation soars

“Mortgage refinances surged in the last two years, as many homeowners were able to take advantage of historically low interest rates,” researchers from the Federal Reserve Bank of New York wrote in a blog post based on new data on household debt and credit.

“The recent refinancing boom is effectively over, given the recent increases in mortgage rates and the fact that many borrowers who would benefit from a refinance have already done so,” the researchers write.

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Remove the private mortgage insurance

If you made a down payment of less than 20% when you purchased your house, you likely needed to add the cost of private mortgage insurance on top of your monthly mortgage payments.

But once your principal loan balance is less than 80% of the current value of your home, the service provider may be able to remove the private mortgage insurance and save you $100 to $300 a month, says Jarrod G.

Make an extra mortgage payment

Paying an extra $100 a month can cut several years off a 30-year mortgage by paying down the interest owed, says Brandon Gregg.

Consider energy efficiency tax credits and deductions

Improving the energy efficiency of your home could put more money into your pocket than refinancing.

Government-sponsored tax credits and deductions for improving the energy efficiency of your home also help you save money on your electric bill and increase the overall value of your home, putting more money back in your wallet, says Wheeler Pulliam, CFP with Xponify Financial.


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