How to 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 struggling to make ends meet or simply want to reduce your monthly expenses, there are several strategies you can employ to achieve this goal. In this article, we will explore various methods to lower your mortgage payment and provide you with practical tips to make it happen.

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, usually at a lower interest rate. This can result in substantial savings over the life of your loan. Additionally, refinancing may allow you to extend the repayment period, further reducing your monthly payment. However, it’s essential to consider the closing costs associated with refinancing and ensure that the long-term benefits outweigh these expenses.

Loan Modification

If you’re struggling to meet your mortgage payments due to financial hardship, you may be eligible for a loan modification. This process involves negotiating with your lender to modify the terms of your loan, such as reducing the interest rate, extending the repayment period, or even forgiving a portion of the principal balance. Loan modifications are typically offered to borrowers facing temporary or permanent financial difficulties, such as job loss or medical expenses. Contacting your lender and explaining your situation is the first step towards exploring this option.

Eliminate 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). PMI protects the lender in case of default but can add a significant amount to your monthly payment. Once you have built sufficient equity in your home, you can request the removal of PMI, which can result in a lower mortgage payment. Consult with your lender to determine the requirements for PMI removal, which typically include reaching a loan-to-value ratio of 80% or less.

Property Tax Assessment Appeal

Property taxes can be a significant portion of your monthly mortgage payment. If you believe that your property has been overvalued for tax purposes, you can file an appeal to have it reassessed. A successful property tax assessment appeal can lead to a lower assessed value, resulting in reduced property taxes and ultimately lowering your mortgage payment. Research the appeal process in your local jurisdiction and gather evidence to support your case, such as recent comparable sales in your area or property condition issues.

Biweekly Mortgage Payments

Switching to biweekly mortgage payments can help you lower your mortgage payment over time. Instead of making one monthly payment, you make half of your monthly payment every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which is equivalent to 13 full payments. By making one extra payment per year, you can pay off your mortgage faster and reduce the total interest paid. However, before opting for this method, ensure that your lender allows biweekly payments and inquire about any associated fees.


Lowering your mortgage payment is achievable through various strategies such as refinancing, loan modification, eliminating PMI, property tax assessment appeals, and biweekly payments. Each method has its own advantages and considerations, so it’s important to evaluate which option best suits your financial situation and goals. Remember to consult with your lender, research local regulations, and consider the long-term implications before making any decisions.


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