How to get a lower mortgage payment?

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Lowering your mortgage payment can provide significant financial relief and help you save money in the long run. Whether you’re struggling to meet your current payment or simply want to reduce your monthly expenses, there are several strategies you can employ to achieve a lower mortgage payment. In this article, we will explore some effective methods to help you achieve this goal.

Refinancing Your Mortgage

Refinancing your mortgage is one of the most common ways to lower your monthly payment. By refinancing, you replace your existing mortgage with a new one that offers better terms. Here are a few refinancing options to consider:

1. Lower interest rate: If interest rates have decreased since you obtained your mortgage, refinancing to a lower interest rate can significantly reduce your monthly payment.

2. Longer loan term: Extending the term of your mortgage can also lower your monthly payment. However, keep in mind that this may result in paying more interest over the life of the loan.

3. Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage: If you currently have an ARM, switching to a fixed-rate mortgage can provide stability and potentially lower your monthly payment.

Loan Modification

If refinancing is not a viable option for you, you may consider a loan modification. This involves negotiating with your lender to modify the terms of your existing mortgage. Here are a few possibilities:

1. Interest rate reduction: Requesting a lower interest rate from your lender can result in a reduced monthly payment.

2. Loan term extension: Extending the term of your loan through a loan modification can help lower your monthly payment by spreading it out over a longer period.

3. Principal forbearance: In some cases, lenders may agree to temporarily reduce or suspend a portion of your principal balance, resulting in lower monthly payments. However, it’s important to understand the terms and potential consequences of this arrangement.

Eliminating Private Mortgage Insurance (PMI)

If you made a down payment of less than 20% when purchasing your home, you are likely paying for Private Mortgage Insurance (PMI). Eliminating PMI can lower your monthly payment. Here’s how you can achieve this:

1. Reappraisal: If you believe that your home has significantly increased in value, you can request a reappraisal. If the new appraisal shows that your loan-to-value ratio is below 80%, your lender may agree to remove PMI.

2. Mortgage balance reduction: Paying down your mortgage balance to 80% or less of your home’s original appraised value can also lead to the elimination of PMI.


Lowering your mortgage payment is possible through various strategies such as refinancing, loan modification, and eliminating PMI. Each option has its own benefits and considerations, so it’s important to evaluate your specific financial situation and consult with professionals to determine the best course of action. By taking proactive steps, you can potentially reduce your monthly mortgage payment and improve your overall financial well-being.