5 ways to lower your mortgage payment

Housing is usually our biggest monthly expense, right? If your mortgage is taking up too much of your budget, don't worry. There are some pretty easy and cost-effective ways to lower those payments. Let’s dive into five possible ways to pay less for your mortgage and what you need to take advantage of them.
1. Get rid of mortgage insurance
If you put less than 20% down on a conventional mortgage, you’re likely paying private mortgage insurance (PMI). It’s a pesky fee that doesn’t protect you—it’s for the lender. This can add hundreds to your monthly payment. The good news? Once you build up enough equity (about 22%), your lender will automatically cancel PMI. If you hit 20% equity sooner, you can request your lender to drop it. But, if you’ve got an FHA loan, you’ll need to refinance to a conventional loan to ditch those mortgage insurance premiums. If you’re paying too much for your
mortgage, consider refinancing. You could save up to $3,264 a year with our top-tier mortgage partners. Get started now!
2. Consider recasting your loan
Already have a low interest rate and don’t want to refinance? Look into recasting your mortgage. This involves making a large lump-sum payment toward your loan balance, which lowers your monthly payments without changing your interest rate. There are usually no closing costs, but your lender might charge a small administrative fee. Not all lenders offer this, so it’s worth asking about. And remember, refinancing could be your ticket to securing those lower payments.
Learn more about our refinancing options and see how you can save up to $3,264 a year.
3. Shop around for home insurance
If you’re paying your homeowners insurance monthly, you have the flexibility to switch providers if you find a better deal. Gather quotes from multiple companies and compare not just the price but also customer service and reliability. You want a provider that’s responsive and fair with claims. And don’t forget, switching your insurance might be easier than you think, and it could save you a bundle each month. If you’re paying too much for your mortgage, refinancing might also help.
Check out this refinancing options and save up to $3,264 a year.
4. Ask about a mortgage modification
If you’re struggling with payments due to a major life event, like losing your job, you might qualify for a mortgage modification. This can lower your interest rate, extend your repayment term, or even reduce the principal balance. For temporary relief, you might consider forbearance, which pauses or reduces payments for a period. Both options have different requirements, so check with your lender for details. And if you need more permanent solutions, consider refinancing.
5. Refinance your mortgage
Refinancing can be a game-changer, letting you take out a new loan to replace your current one, ideally at a lower interest rate. This can significantly decrease your monthly payment. Keep in mind, though, that the process can be costly due to closing costs. But if the conditions are right, refinancing can be worth it. If you’re paying too much for your mortgage, check out this refinancing option.
Bottom Line
There are several ways to reduce your monthly mortgage payment. Some methods involve upfront costs and effort, while others, like switching home insurance providers, are simple and cost-effective. If you're really stuck, you might need to consider more drastic measures like renting out your home or selling it.
If you’re paying too much for your mortgage, you can get referred to low rates for a new purchase mortgage or save up to $3,264 a year with a refinance through our top-tier mortgage partners. Get started now!