If your mortgage payment feels tight, there are several ways to bring it down. Some are quick wins and others take a bit more work, but each can add up to real monthly savings.
Ways to reduce your payment
- Refinance to a lower interest rate
- Remove PMI once you reach 20% equity
- Extend your term with a refinance to spread payments out
- Recast your loan after making a large principal payment
- Shop your homeowners insurance for a better premium
- Appeal your property tax assessment if it seems too high
Refinancing versus recasting
A refinance creates a brand new loan, ideal when rates have dropped. A recast keeps your existing loan and rate but re-amortizes it after a lump-sum payment, lowering the payment without the cost of a full refinance.
The best lever depends on your loan and equity. A quick review will tell you which one saves you the most.