A high mortgage payment can quietly strain your budget month after month. The good news is that your payment is not fixed forever. With the right strategies, many homeowners can reduce their monthly obligation and free up cash for other priorities.
Refinance for a Lower Interest Rate
Refinancing replaces your current loan with a new one—often at a lower interest rate.
Lowering the interest rate by 1% on a $200,000 loan can reduce the monthly payment by roughly $120, adding up to significant annual savings.
Some homeowners choose to purchase mortgage points. One point typically costs 1% of the loan amount and may reduce the interest rate by 0.25% to 0.5%. This option is often best for long-term homeowners.
Eliminate Private Mortgage Insurance (PMI)
If you put less than 20% down, you may be paying PMI.
- Request removal once you reach 20% equity
- PMI must be removed automatically at 22% equity
- A new appraisal may help if your home value has increased
Extend the Loan Term
Refinancing into a longer term can reduce monthly payments by spreading the remaining balance over more years. This can provide immediate budget relief.
Review Your Homeowners Insurance
Insurance premiums often increase over time. Shopping around, bundling policies, and asking about discounts may reduce costs.
Appeal Your Property Tax Assessment
If your property taxes are too high, appealing your assessment may lower your tax bill and your monthly payment. Comparable sales and recent appraisals can strengthen your case.
Your Mortgage Payment Can Change
Your mortgage payment is not permanent. Strategic adjustments can lead to meaningful savings.
Ready to explore ways to lower your mortgage payment? Contact our team today to review your options and see how much you could save.