How to Reduce Your Monthly Mortgage Payments
If you have a mortgage, you've probably wished you were paying less at some point or another. Though this isn't always possible depending on your circumstances, there are usually some steps you can take to reduce your mortgage payment. Here are our top 3 favorite ways of reducing mortgage payments:
The most cost-effective and easiest way of reducing your monthly mortgage payments is to refinance your mortgage. You can either refinance into a different rate or a different term-length, depending on the options that are currently available to you.
#2: Drop Your PMI.
If you can, try to get to the point where you own 20% equity in the home. Depending on the loan type you have, this could help you drop the private mortgage insurance as quickly as possible. Private mortgage insurance can easily add a couple hundred dollars a month to the loan, so this will be a big way for you to reduce it.
#3: Extend Your Mortgage.
If you extend your mortgage term-length from say, fifteen years to thirty years, you'll be paying less every month, but your rates will rise. You also have to consider the financial impact of this decision and realize how much longer you'll be paying for your mortgage.
Whatever you decide to do, make sure that you have put a lot of thought into your decision. Making changes to your mortgage is a big deal, so have a conversation with your lender to see what the best decision for you will be.