5 Tips for Lowering Your Mortgage Payments and Saving You Money

Lowering your mortgage payments can help you save more money in the long run. Here are five tips to help you reduce your monthly mortgage payments.

1. Refinance Your Mortgage

Refinancing your mortgage is a great way to lower your mortgage payments. You can refinance for a shorter period, which will result in lower payments, or you can refinance to a lower interest rate, which will also lower your payments. If your credit score has improved since you first got your mortgage, you may also qualify for a better interest rate, which could significantly reduce your payments.

2. Extend the Term of Your Mortgage

If you extend the term of your mortgage, you will pay less each month. This can be helpful if you are struggling to make your payments but you have good credit and you are not under water on your loan. However, keep in mind that you will end up paying more interest in the long run, so this is not the best option if you can afford to pay more each month.

3. Make a Larger Down Payment

Making a larger down payment on your house can significantly lower your mortgage payments. If you can afford to pay more upfront, you can reduce the amount of money you need to borrow, which means you will have lower payments. A larger down payment can also help you avoid private mortgage insurance (PMI), which can increase your monthly payments by hundreds of dollars.

4. Challenge Your Home Assessment

If your property value has decreased since you bought your house, you may be able to challenge your home assessment and get a lower property tax bill. This can help you lower your monthly mortgage payments, as property taxes are often included in your mortgage payments. Contact a tax assessment professional to learn more about this option.

5. Ask for a Forbearance

If you are experiencing temporary financial hardship, you may be able to work with your lender to get a forbearance on your mortgage payments. This means your lender will temporarily postpone your payments or reduce them for a certain period of time. Keep in mind that this is not a long-term solution, but it can be helpful if you are facing a financial crisis.