How to Lower Your Mortgage Payments

Want to lower your monthly mortgage payments without adding to the length of your loan? Here's how to do it:

Ditch Your Private Mortgage Insurance

Mortgage Statement. Photo © Erin Huffstetler

If you didn't make a 20% down payment when you bought your home, you probably got saddled with private mortgage insurance, and that little add-on is easily costing you over $100 a month. (It runs around $83 a month for every $100,000 that you borrow). Fortunately, there are several ways to get your lender to drop the coverage, and if you succeed, you'll score that lower monthly payment that you're after, plus save many thousands over the course of your loan,

Cut Your Property Tax

That property tax assessment that you receive each year doesn't have to become your property tax bill. Use these six strategies to snag a better deal, and you'll be on your way to a lower mortgage payment.

Cut Your Homeowner's Insurance Premium

Meet with your insurance agent to see if there are any ways to lower your homeowner's insurance premiums that you might have missed. Here are some discounts to ask about. Just raising your deductible to $1,000 is often enough to cut your premiums by 40%, so this could really help you get your monthly mortgage payment down.

Refinance Your Mortgage

Have the interest rates dropped considerably since you bought your house? If so, refinancing could be your ticket to a smaller mortgage payment. Just be sure to keep the length of your loan the same as it is now, so it doesn't take you longer to pay off your house.

Have an Escrow Account?

If your homeowner's insurance, property tax and private mortgage insurance are paid out of an escrow account, reducing these expenses won't result in an immediate reduction in your monthly mortgage payment. You'll have to wait for your escrow account to be adjusted at the end of the year. Once this happens, you'll receive a refund for the amount that you overpaid.