Purpose
Refinance Purchase Home Equity

Loan Type
Fixed ARM Interest Only FHA

Amount

State
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Display Mortgage Rates &
Refinance Rates in your State

How Can I Lower My Mortgage Payments?

By Stacy Williams

How Can I Lower My Mortgage Payments? Read here for ways that you can save money on your monthly mortgage payment!

Due to poor economic conditions which include rising unemployment and decreased salaries, many people are looking for ways to save money each month. For most people, the largest expense they have each month is their mortgage payment. Luckily there are various ways a person could lower their monthly mortgage payments.

Refinance into a Lower Rate

The most effective way to lower your mortgage payments would be to refinance into a lower rate. If you had a 30 year, $200,000 mortgage with a 6% interest rate and you refinance into a 5% interest rate, your monthly mortgage payment would decrease by about $125 per month. Also, by reducing your interest rate from 6% down to 5% would save about $45,000 over the course of the 30 year mortgage.

Put More Money Down

Another way to lower your mortgage payments would be to put more money down. By putting more money down, you will have a lower principal balance to repay and therefore a lower monthly payment. If you have a $200,000, 30 year mortgage with a 6% interest rate, your monthly payment would be about $1,200 per month. If you put $20,000 more down, your payment would be reduced by about $120 per month.

Extend Repayment Terms

The third way to lower your mortgage payments is to extend your repayment terms. When looking to refinance a loan, many banks will allow you to re-amortize your loan over a longer period. If you have a $200,000, 30 year mortgage with a 6% interest rate, your monthly payment would be about $1,200 per month. If you refinanced and extended your mortgage into a 40 year mortgage, your payment would drop by about $100 per month.

Related posts:

1. How Can Mortgage Refinance Rates Affect My Finances?
2. How Do I Refinance And Lower My Mortgage Interest Rate?
3. What Are The Advantages Of 15 Year/30 Year Mortgage Loan Terms?
4. If I Am Behind On My Mortgage Payments, Will They Take My Home?
5. What Factors Affect How Much My Mortgage Payments Will Be?