7 Ways to Lower Your Mortgage Rate

Table of Contents

Owning a home is exciting. You’ve escaped the towering world of rental payments and purchased something that belongs to you! It’s something to be proud of, you can feel happy about it, and feel accomplished when it finally goes into your name. With that ownership comes responsibility. While you’re trading rental payments for mortgage payments, your mortgage is often lower than a rental payment and saves you plenty of money in the long run. That’s great! Today we’re here to discuss a few tips on how you can lower your mortgage rate. 

1. Make a Larger Down Payment

If you’re in the process of buying a home, putting down a larger down payment can assist in lowering your monthly mortgage. While every loan is different, putting down at least 20% can make a great difference in how much you pay each month. If you’re not in a time crunch and you’re able to take the time to save up more money to put down, then it’s even better.

You may also have a family member that can gift a little extra money to you that you can use to increase your down payment. Talk with your lender about gift money, items you’re willing to part with that make bring in a little extra cash, and all of your potential options.

2. Reduce Your Mortgage Insurance

Before you completely get rid of your mortgage insurance, talk to your lender about reducing it. Most policies will allow you to pay the premium upfront at the closing, making the monthly payment vanish, but if you don’t have the resources to do that then you may be able to pay a little more than planned to help take that monthly stress away. This will offer temporary relief financially. 

Additionally, if the seller is paying closing costs, you can ask for them to pay the mortgage insurance in one lump sum. Sellers won’t always agree to this, but you won’t know if you don’t ask.

3. Drop Your PMI

Some banks will allow you to skip out on private mortgage insurance if you put 20% down or if you’ve paid 20% of the loan. Once you’ve put enough money into the home and the market rises to give it more equity, you can ask your lender about dropping your mortgage insurance. Often if they’re willing to let you drop it, they’ll send an appraiser out to verify the value of your home. Once that appraiser reports back to your lender, you may see your mortgage rate drop.

4. Refinancing

7 Ways to Lower your Mortgage Rate

You’ll have to pay a little money up front with this option, but it can benefit you greatly. Consider refinancing your mortgage to take advantage of a lower interest rate. You’ll need to know the market value of your home to show its equity, and you’ll have to pay refinancing closing costs, but this can lower your monthly mortgage rate by up to 1%. 

5. Extend Your Repayment Term

Having a little extra time to make ends meet can be nice. It gives you a little breathing room and ensures that you’ll be able to pay your bills without getting too overwhelmed. If extending your repayment term sounds beneficial to you, call your lender to see if that’s an option. This is also known as re-amortizing and you may be able to go from a 12-year mortgage to a 24-year or even 30-year mortgage. This will reduce your monthly payments by spreading it out over a longer period of time. You’ll need to pay more interest in the long run, but it can be beneficial for quick financial relief. 

6. Apply for Forbearance

Should you be hit with financial hardship, talk to your lender about a forbearance option. Make sure you do this before you miss a payment so they can help you. If they see it may help you out they may temporarily suspend your monthly payments or lower it to lighten the financial strain during this time. Once the set time frame is over your payments will resume like normal and you will have to make up for any missed payments in some way. This may be increasing your monthly payment a little each month to spread it out, or extending the repayment term.

7. Rent out Part of Your Home

For the second home, the home with an extra bedroom or basement, rent it out temporarily. That extra income can help make double the payments and will assist in paying off the full loan earlier. The little bit of additional money can help cover the costs of any needed repairs, offset your monthly payment, and provide a little breathing room financially. Often you can find a friend that needs a place to temporarily live, and even if you only charge them a percentage of your monthly rate it’ll help drastically. 

In the situation that you’ve never rented a property out to anyone, you can contact us at Nomadic Real Estate for your property management needs. There are no upfront fees and you only pay us when we’ve put a tenant in your home. We offer a 30-day guarantee with an approved tenant, 24/7 support in case of an emergency, and zero penalties should you decide to go a different direction. 

Find More Ways to Lower Your Mortgage Rate

Our licensed team has over a decade of experience in the marketing world, and they’re more than happy to share that knowledge with you. Should you have any questions on the market, turning a home into a rental, finding the perfect tenants, or any general real estate question, we’re more than happy to help you.

When it comes to understanding mortgage rates and how to lock in the best one, we’ll connect you with the best lenders around to help make sure you get the lowest rate and have the most knowledgeable connection to help you in the future.

Get in touch with us today if you have any questions or concerns. We look forward to hearing from you and working in the near future.

Share via Email
Share on Facebook
Share on LinkedIn
Share on Twitter

Get help from DC's top real estate team.

Founded in 2005, Nomadic is the go-to full service real estate firm in the DMV. We've helped thousands of landlords, investors, and residents and we would love to connect with you next.

Check out more of our blog posts below!

Or search for a different topic:

IT Support by SADOSSecure, Fast Hosting for WordPress
Scroll to Top
Scroll to Top
Explore Logo

Get a free INSTANT home valuation report!

Automatically delivered straight to your inbox within seconds.

Explore Logo

Thinking of selling? Get an instant property value report:

Enhanced Reporting

Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
  • This report enables you to quickly compare financial performance between your units at a glance without toggling between individual reports. 

Income Statement Month-Over-Month:

  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

You'll also find a month-over-month operating statement:

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Responses will show up in the conversation ticket:

  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Each conversation will be logged in its entirety:

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

View a snapshot of income and expenses on your dashboard:

See every transaction in real-time on your ledger:

Statements and forms will be posted to your documents library:

View a suite of real-time financial reports:

See a running list of all bills, and drill down for more detail:

Under Bill Details, you'll find dates/descriptions/amounts and more:

You can also communicate with your Account Manager through the portal:

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.