How can i lower my mortgage payment without refinancing?

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Lowering your mortgage payment without refinancing can be a great way to save money and improve your financial situation. Refinancing your mortgage often comes with fees and closing costs, so finding alternative methods to reduce your monthly payment can be a more cost-effective approach. In this article, we will explore several strategies that can help you lower your mortgage payment without the need for refinancing.

1. Make Extra Payments Towards Principal

One effective way to lower your mortgage payment without refinancing is by making extra payments towards your principal balance. By reducing the principal amount, you can decrease the interest charged on your loan, resulting in a lower monthly payment. Consider allocating any extra funds, such as bonuses or tax refunds, towards making additional principal payments. Even small extra payments made consistently over time can have a significant impact on reducing your mortgage payment.

2. Request a Loan Modification

If you are facing financial hardship or struggling to keep up with your mortgage payments, you may be eligible for a loan modification. A loan modification is a negotiation with your lender to modify the terms of your mortgage, such as extending the loan term or reducing the interest rate. This can result in a lower monthly payment without the need for refinancing. Contact your lender to discuss your situation and explore the possibility of a loan modification.

3. Remove Private Mortgage Insurance (PMI)

If you have a conventional mortgage and are paying for Private Mortgage Insurance (PMI), you may be able to eliminate it and lower your monthly payment. PMI is typically required when you have less than 20% equity in your home. Once you have reached 20% equity, you can request to have PMI removed. This can be achieved by making extra principal payments, home value appreciation, or a combination of both. Consult with your lender to determine the specific requirements and process for removing PMI.

4. Appeal Property Tax Assessment

Property taxes can significantly impact your monthly mortgage payment. If you believe that your property has been overvalued or the property tax assessment is inaccurate, you can appeal the assessment. Contact your local tax assessor’s office to understand the process and requirements for appealing your property tax assessment. If successful, a lower property tax assessment can result in a reduced monthly mortgage payment.

5. Rent Out a Portion of Your Property

If you have extra space in your home, such as a basement or a separate unit, consider renting it out to generate additional income. This extra income can be used to offset your mortgage payment, effectively reducing your monthly financial burden. However, make sure to check local regulations and obtain any necessary permits or licenses before renting out a portion of your property.


Lowering your mortgage payment without refinancing is possible by implementing various strategies. Making extra payments towards the principal, requesting a loan modification, removing PMI, appealing property tax assessment, and renting out a portion of your property are all viable options. Each strategy comes with its own requirements and considerations, so it’s important to evaluate your specific situation and consult with professionals, such as lenders and tax assessors, for guidance.