There are several reasons why you might want to lower your monthly mortgage payments. You may be going through a difficult financial period or might want to simply lower your monthly costs to free up more capital. Luckily, there are many options to explore to reduce monthly mortgage payments and they’ll be explored in the section below.
- What should mortgage brokers look for from a private lender?
- Benefits of buying a new home during the summer season
3 ways to lower your monthly mortgage payments
Refinance your mortgage: This is one of the most effective ways to reduce your monthly payments. Interest rates may have dropped, and you may qualify for a lower rate, saving you money both in the short term and long term.
Extend mortgage term: This option can greatly reduce your monthly payments, but you must assess what the long-term implications are for you. Your total mortgage cost will go up, but this option will reduce your monthly financial burden.
Make a larger down payment: When you purchase a home, consider putting down a larger down payment. If the purchase price of your home is $1 million or more, the minimum down payment required us 20%, but if you can put down even more, you will reduce your monthly mortgage payments.