How Can I Lower My Mortgage Payments Without Refinancing?

How can I lower my mortgage payments without refinancing? Read here for tips on how to save money on your mortgage!

Due to various economic factors, mortgage interest rates are near all time lows. By capitalizing on the low rates, many borrowers would be able to reduce their mortgage payments. Unfortunately, because of falling home prices, many people do not qualify for a mortgage refinance. Luckily, there are several ways to lower your mortgage payment without refinancing.

Negotiate with your Lender

The first way to lower your mortgage payments without refinancing is to negotiate with your lender. While lenders are less willing to negotiate interest rates than they were a few years ago, many are still willing to drop your interest rate if you threaten to refinance with another bank. This process is relatively informal and requires you to call your loan officer and request a lower rate. Depending on whether they consider you a valuable client or not, your lender may drop your rate slightly without charging a fee.

Ask Your Lender to Adjust Early

The next way to lower your mortgage payments without refinancing is to ask your lender to adjust your mortgage early. If you have an adjustable rate mortgage which is set to adjust in the next few years, your lender may be willing to adjust your mortgage early to capitalize on the lower interest rates.

Pay Down Your Loan

Another way to lower your mortgage payments without refinancing is to pay down your loan. This option will only help people who are presently paying Private Mortgage Insurance. If you pay your mortgage down to the point where you now have 20% equity in the home, your lender will no longer be able to charge you for PMI, which could save your over a hundred dollars per month. While this won’t require you to refinance, you will need to order a new appraisal.

How Can I Lower My Mortgage Payments Without Refinancing?

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