Lower Your Monthly Mortgage Payment
Lower Your Payment
Refinance and lower your monthly mortgage payment.
Don’t pay more on your monthly mortgage payment that you have to. Refinancing your loan can offer a lot of savings, both immediate and long-term. There are a few ways to lower your payment. This includes the most obvious method of lowering your interest rate. There are other methods of lower your mortgage payment, including eliminating mortgage insurance, extending the life of your loan, switching your loan type, and moving to a fixed rate.
- Switch to Lower Rate – This is the most widely way of lower monthly mortgage payments. Refinancing to a lower rate will both lower your mortgage payment and the amount you pay over the life of the loan. However, you should factor in the fees and loan reset to see how much you will actually save. If you are only concerned about the short-term benefits of reducing your payments, then this is not as important. If you want to save the most money overtime it is important to determine how much you will save, at what point you will break even, and how much you can save over the life of the loan. It is important to be meticulous and look closely at the numbers of what a refinance will save you. Just because you can lower your payment doesn’t necessarily mean it will save you money in the long run.
- Extend Life of Loan – This is an effective way of lowering your monthly payment. The longer the repayment timeperiod is, the lower your payment will be. For instance, a $200,000 mortgage on a 15 year loan at 4% is $1,479.38. The same $200,000 mortgage on a 30 year loan is $1,163.16.
- Eliminate Mortgage Insurance – Refinancing to get rid of mortgage insurance can save you a fortune. The mortgage insurance rates on almost all types of loans have gone up in recent years. This is especially the case for FHA loans, which now have mandatory upfront and monthly premiums. By refinancing to remove mortgage insurance, you can save thousands of dollars overtime.
- Switch to Interest Only – This is not recommended for many homeowners since on an interest only mortgage you are not reducing your balance and establishing home equity. You are merely just paying the interest of your mortgage. If you are in need of the absolute lowest mortgage payment possible, an interest only mortgage may be a solution for you though.
- Switch From Fixed to ARM – This is also not something that just any homeowner should consider. The rates of ARM loans are usually lower than fixed rate mortgages, but the adjustable rate could eventually leave you with a much higher payment. Consider closely if you are prepared to either refinance before the rate adjusts, or can handle higher payments if rates are higher at the time the of the rate adjustment.
- Overpay Your Mortgage – If you want to be proactive, you can start paying off some of your mortgage balance each month (or weekly). This can help you establish equity faster, therefore lowering your loan-to-value ratio. This will help you receive lower rates, and eliminate your PMI or FHA MIP sooner.
Another option that may exist to you, certainly no guarantee that it does, but could potentially be available, is to have your current mortgage lender recast your loan. How this works, is it basically resets the life of your loan with your current loan balance.
Contact us to learn all of the opportunities that are specifically available to you for lowering your mortgage payment. We offer a hassle free consultation and will take the time to help you understand all of your options.
What Programs Are Available To Refinance to Lower Your Payment?
- Conventional Rate/Term Refi
Whether you are currently on a fixed rate mortgage and simply wish to lower your interest rate and payment or if you are on an adjustable rate mortgage and wish to switch to a fixed rate mortgage and also lower your payments, we will do our best to assist you. We provide several different amortization schedules to accommodate to whatever your mortgage goals are. The most popular options are a 30 year fixed mortgage rate and a 15 year fixed mortgage rate.
- FHA Streamline Refinance
For those who are currently on an FHA insured loan, we suggest that you first consider applying for a streamline refinance. The FHA streamline refinance program is a quick and simple way to lower your interest rate and monthly payments. No credit check or income documentation need to be rendered, and in most cases you will not need to order or submit a new appraisal. It is an affordable and efficient option for lower the monthly mortgage payments of your current FHA loan. If you are no an FHA loan, but would like to refinance into one, you may do so. However, the streamline loan program is exclusively for those who are already in an FHA loan.
- VA Streamline Refinance
Our selection of refinance programs for veterans includes 100% financing on both cash out refinances and the va streamline refinance, which is also known as the interest rate reduction refinance loan (IRRRL).
- HARP Refinance Program
HARP is the perfect solution for American homeowners who are “upside down” on their home loan and owe their mortgage lender more than their home is worth. This program was created by the United States government for the very purpose of assisting American homeowners who are having trouble finding financing due to owing more to their bank then their home is actually worth. As long as you at least owe 80% or more, even up to 200% of what your home is worth, you may possibly qualify for a HARP refinance.