7 Clever Ways to Lower Your Mortgage Payment without Refinancing

A man's hands holding a stack of coins and a house, representing refinancing.

Mortgage payments can be one of the biggest parts of your monthly outgoings so it’s always a good idea to find ways in which to reduce these payments. Here are 7 practical methods that work without going to the extreme length of refinancing.

Re-Amortize Your Mortgage

This means structuring a loan in a way that more interest is paid off early in the process and as it progresses the principle is paid of later in the loan. This can shorten the term of your loan and save you money in the long run making good financial sense if you can get it to work.

Have your Mortgage Company Re-Calculate your Escrow Payment

It is possible to ask your mortgage provider to reassess your Escrow Account as it is an extra payment they are holding on your behalf and is often an estimate with extra funds being left aside in there so it’s wise to check if it’s set up for you in the best way.

Appeal Your Home’s Assessed Value with the County

One of the big costs associated with property ownership is the property taxes which are levied based on the assessed value of your property by the local county. But did you know that you can appeal the property assessment if you feel the county has unfairly assessed a rise in your properties value. This can, if successful, lower your outlay on property taxes.

Work on Increasing Your Credit Score

Increasing your credit score is a good way of achieving lower interest on your mortgage as with any lending credit score is one of the main factors taken into account when setting rates. There are many ways in which you can improve your credit score

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Get an Adjustable Rate or 40-year fixed-rate Mortgage

It’s a good idea to look at what type of mortgage you have and whether or not it’s in your best interests to find a lower interest mortgage. A fixed rate has different advantages than a variable rate mortgage though, fixed is exactly what it says in that the payments will be the same for the whole duration of the mortgage whereas the variable mortgage will change based on current mortgage rates, making it a possibility that you will pay less but there is a risk involved.

Loan Modification Programs: Home Affordable Modification Program (HAMP)

If you are experiencing financial hardship then the Home Affordable Modification Program might be the answer, it is a last resort option to avoid foreclosure and find a solution that is better for the lender and the debtor.

Shop for a Cheaper Homeowners Insurance Policy

This doesn’t technically reduce your mortgage payments but will reduce your home outgoings, it’s a good idea to shop around for cheaper insurance, especially if you haven’t updated or changed in recent years as sometimes there are better deals for new customers or if you’ve changed your home in any way your previous provider may not be best anymore for your current home set up.

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