Ways To Lower Your Mortgage Payment

It seems like during and after the housing crisis, those looking to buy were in the best position. Mortgage rates lowered, the government offered incentives and builders were practically paying shoppers to buy their homes. What about families already in a home that want to take advantage of the low interest rates? Well, luckily there are easy and hard ways to lower your mortgage payment. 

          A popular way to lower your mortgage payment is to refinance. This option may not be right for everyone. But may be ideal if your financial situation has improved. If you’ve paid off a large balance on a credit card or your income has increased then perhaps you’ll garner a better interest rate than you had before. This method may work especially well if you have a lump payment that you can apply toward the principal.

          You could also extend the term of the loan. Extending the term five years on a 15-year loan can save you over $100 on the monthly payment. However, by increasing the length of the loan, you pay and extra $20,000 in interest.

          If you don’t want to stay in your current home, there are also options.  You could downsize to a smaller home with less mortgage. One interesting option is to buy and live in a multi-unit rental property.

You can live in one unit and put the rent you collect from other units toward the mortgage. If this type of situation is right, you could avoid putting any money toward the mortgage at all. But you will have to deal with tenants.      

          What are you waiting for? Interest rates are still at historic lows.

Take advantage of the situation, talk to your financial institution about ways you can lower your mortgage payment.