One way to reduce a Mortgage Payment
147 words eaten alive on January 4, 2010 - Filed Under Finances, Insurance, Life -
One thing you may be able to do to reduce your mortgage payment a little is to get your own term life insurance plan to cover the cost of the mortgage. I think I’m currently paying $33 a month for life insurance as part of my mortgage payment. But even though the mortgage payoff amount gets lower each year, the $33 a month payment remains the same. At some point in the next few years, it will be better for me to drop the built in life insurance and take out a separate policy. This way if the balance of the mortgage is, say, $50k and I have a policy that pays $100k, my wife and kid would have $50k left over after paying off the house. With the built in insurance, it only covers the balance of the mortgage, no extra.
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