How to Lower Your Monthly Mortgage Payments
4 minute read
July 4, 2019


As time goes by, you’ll realize that owning a house of your own isn’t all it’s cracked up to be. It means you’re responsible for fixing anything that breaks down in your house. Pipes that make funny noises, peeling wallpaper, wiring that needs to be replaced—all of that is on you. What’s worse, you’ll have to fix those things and pay your monthly mortgage, which remains high. Take advantage of our guide on how to lower your monthly mortgage payments and save yourself from the worries.

While every homeowner’s situation is different. However, those who secured a mortgage to pay off their houses usually dream of the same thing. It is the possibility of paying a lower mortgage. Although most people might look at you like you’re crazy when you talk about lowering your monthly mortgage payments, it is possible to bring down the payments you make on your house every month. What’s more, you can do so in just a few steps!

Whether it’s because your financial situation is tough, or you’d just like to save some extra cash for a rainy day, lowering your monthly mortgage plan is the way to go. If you do that, you’ll have more wiggle room in your finances every month. You won’t have to break the bank or make any sacrifices to pay your mortgage. 

While comparing different lenders for the best interest rate might seem like the best option, that won’t always work. If that option isn’t available to you, there are other things you can do to lower your mortgage payment:

Buy down the interest rate 

Although this may sound like bribery to a certain extent, it’s not. You can lower the monthly interest rate of your mortgage payment by purchasing discount points that can be applied to your monthly dues. Discount points can be used to bring down the monthly interest rate of your home by taking a significant amount off the total amount you have to pay. Typically, discount point systems work on a percentage scheme, which means a certain percentage will be shaved off your monthly payment. For example, purchasing a discount point will usually cost around $2000.00 on a $200,000.00 loan. When you apply what you purchased to your monthly dues, what used to be a 4% interest rate will become 3.75%. It’s that simple.

Refinance your loan

By simply going through the mortgage process again to get a new loan with a lower interest rate, you can lower your monthly payments and keep your home. It will be as if nothing happened. Refinancing your loan can lengthen or shorten your repayment period, place access to equity in your home, and lower your interest rate to your liking. All of that will make it much easier to settle your monthly payments until your loan is entirely paid off. However, you should check if this approach will help you out in the long run or if it will simply be a temporary solution.

Recast your loan

Compared to refinancing, recasting your mortgage will help reduce the principal of your loan. It will bring down the monthly payments or shorten your repayment period. While shortening the payment period of your loan is your goal when you opt to recast your loan, you should know that you can ask your loan provider about recalculating your monthly loan payment. This may help lower your monthly payments while maintaining the repayment period you agreed upon when you signed the contract.

Aceltis Group is a professional mortgage company in New Jersey. We can help you with all of your mortgage needs. Contact us today and see what we can do for you.

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