Reducing your monthly mortgage payments can lead to significant financial benefits, and Perch provides several targeted options to help you accomplish this goal. Lets explore some of these options below.
1. Switch to an Interest-Only Loans
Interest-only loans allow you to pay only the interest for a certain period, reducing your monthly payments. This can be a suitable option if you anticipate a higher income in the future.
2. Switch to a lower rate
After you've added your property to Perch and entered your mortgage information Perch will automatically calculate your estimated "switch savings opportunity" for each of your outstanding mortgages or loan on a given property.
These switch savings are the estimated savings (or losses) you could expect if you were to switch from your current lender to a new lend through the Perch platform.
💡 The great news is that you never have to worry if you've got the right mortgage because Perch is constantly recalculating your switch savings benefit and will notify you via email any time your estimated switch savings are greater than $5000.
3. Extending Your Amortization Period
By extending the amortization period of your loan, you can spread the principal over more months, thereby lowering each monthly payment. It's essential to understand the long-term implications, and Perch can guide you through this decision.
4. Accessing the Equity in Your Property & Offset Payments
Equity in your home can be leveraged to reduce mortgage payments through various strategies. If you'd like to know more about how you can access the equity in your property we've written an entire article about how Perch helps our customer pull equity out of their properties.
Next Steps:
If you haven't already done so, we highly recommend adding your property and mortgage details to your Perch account and complete your profile to help your advisor provide you with your best options.