4 Ways to Lower Your Mortgage Payment

Managing a tight budget can be challenging, but there are effective strategies to ease the strain on your finances by lowering your monthly mortgage payment. Here are four practical tips to help you save:

1. Drop PMI

Private Mortgage Insurance (PMI) can add a significant amount to your monthly mortgage payment. If you've built up at least 20% equity in your home, you may qualify to have PMI removed. To get PMI canceled, ensure you are up to date on your mortgage payments. 

2. Extend Your Loan Term

Extending the term of your mortgage can make your monthly payments more manageable. Think of your mortgage as a pie: a longer term means more slices, which translates to smaller monthly payments. However, be aware that extending your loan term could increase the total interest paid over the life of the loan. 

3. Recast Your Mortgage

If you can make a substantial lump-sum payment towards your mortgage principal, consider recasting your mortgage. This involves having your lender recalculate your loan payments based on the reduced principal balance, which can significantly lower your monthly payments. 

4. Shop Around for Homeowners Insurance

Don’t settle for the first homeowners insurance rate you find. Shopping around can help you uncover better deals and potentially lower your insurance costs. Keep in mind that some insurers may be cautious about writing new policies due to rising natural disasters and rebuilding costs. 

Want to explore these options further or find additional ways to optimize your real estate investments? Let’s connect and discuss the best strategies for your home! 

Feel free to reach out if you have any questions or need personalized advice.