How can i lower my mortgage payment?

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Lowering your mortgage payment can provide significant financial relief and help you manage your budget more effectively. Whether you’re looking to reduce your monthly expenses or free up some extra cash, there are several strategies you can consider to lower your mortgage payment. In this article, we will explore some effective ways to achieve this goal.

Refinance your mortgage

Refinancing your mortgage is a popular option for homeowners looking to lower their monthly payments. By refinancing, you replace your existing mortgage with a new one that offers more favorable terms. This can include obtaining a lower interest rate, extending the loan term, or switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

Refinancing can result in lower monthly payments due to the reduced interest rate or extended loan term. However, it’s important to consider the associated costs, such as closing fees and potential prepayment penalties, before deciding to refinance.

Consider loan modification

If you’re facing financial difficulties or hardship, you may be eligible for a loan modification. This involves negotiating with your lender to modify the terms of your mortgage, such as reducing the interest rate, extending the loan term, or even forgiving a portion of the principal balance.

Loan modification programs are typically offered by lenders to borrowers who are struggling to make their mortgage payments. It’s important to reach out to your lender as soon as you anticipate financial difficulties to explore this option.

Eliminate private mortgage insurance (PMI)

If you made a down payment of less than 20% when purchasing your home, you may be required to pay private mortgage insurance (PMI). PMI is an additional monthly expense that protects the lender in case you default on your loan.

Once you have built enough equity in your home, you can request the removal of PMI. This can be achieved by paying down your mortgage balance or through a reappraisal if the value of your home has increased significantly. Eliminating PMI can lower your monthly mortgage payment and save you a substantial amount over time.

Consider a bi-weekly payment plan

Switching to a bi-weekly payment plan can help you lower your mortgage payment and save on interest over the life of the loan. Instead of making one monthly payment, you make half of your monthly payment every two weeks. This results in 26 half payments, which is equivalent to 13 full payments in a year.

By making an extra payment each year, you can reduce the principal balance faster and shorten the loan term. However, before opting for a bi-weekly payment plan, ensure that your lender offers this option and inquire about any associated fees or requirements.


Lowering your mortgage payment is achievable through various strategies such as refinancing, loan modification, eliminating PMI, and considering a bi-weekly payment plan. It’s crucial to evaluate each option carefully and consider the long-term implications before making a decision. Consulting with a mortgage professional can provide valuable insights tailored to your specific situation.


– Bankrate:
– Investopedia:
– Consumer Financial Protection Bureau: