A home loan is usually the largest expense that a person pays each month. In some cases, it may be too high for you to pay, whether you bought a house that you couldn't afford years ago, if your income has gone down, or if your other expenses have recently increased.
Whatever your situation may be, there are things you can do to change your financial situation. No one wants to feel bound and stuck by their mortgage.
No one wants to get foreclosed on either.
Below are some personal tips to finally gain control of your expensive mortgage.
Add a roommate.
If you have an extra room in your home, then you may want to think about finding a renter for it. Renting your extra room can give you hundreds of dollars extra each month to put towards your mortgage. If you are able to have more than one renter, you may even be able to earn enough money to cover your entire mortgage each month.
You may be able to find a renter either through a family or friend connection, or the person could be someone that you search for and is technically a stranger. Before you allow anyone to move into your home though, it's always a great idea to do your research about them, create a contract, and lay out house rules.
Increase your income.
There are many ways to increase your income so that your mortgage can stop controlling your life each day. You could get a part-time job, put in more hours at your current job, or even start a side business.
Cut your expenses.
Another way to gain control of your expensive mortgage is to cut your expenses. If your expensive mortgage is controlling your life, then you need to find something to cut. If you dig deep enough, you may be able to find hundreds of dollars each month to cut out of your monthly budget.
You should analyze your various expenses such as how much money you spend on food each month, your cell phone bill, your utilities, clothing spending, any membership subscriptions, and more.
Refinance your mortgage.
Depending on when you originally received your mortgage, interest rates on home loans may be lower now. You may be able to refinance your home loan and receive a lower rate, which may save you hundreds of dollars a month in some cases.
Get rid of private mortgage insurance.
Paying private mortgage insurance (PMI) on a home loan can make your monthly mortgage payment much higher than it has to be. If you have the funds available, then you may want to make an arrangement with your home loan provider in exchange for eliminating the PMI from your mortgage each month. This may easily save you hundreds of dollars extra each month with minimal work, plus by doing this you will have paid down your mortgage a little faster.
To eliminate PMI from your mortgage, you usually have to ask your home loan lender if you can eliminate the PMI by paying 20% or more of the home loan value. You usually have to have good payment history in order to be approved for this. Lenders don't always say yes, so it is always wise to ask your lender before you pay extra towards your mortgage.
Downsize your home.
In the end, you may want to think about selling your home and moving into a more affordable home. This can help free you of your expensive mortgage so that you can have more financial freedom. If the house is too expensive for you to pay your monthly payments each month to where you can't enjoy your life, then you may be much happier to unload it, especially if you are not underwater on the home loan.