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Mortgage Finance > Mortgage > Mortgage Payment Reduction
Tips To Reduce Monthly Mortgage Payment
Refinance at a lower rate. That alone can save you a couple of hundred dollars.
Try to make an extra payment every year. That helps lower the principal, and over the life of the loan will reduce the total interest you pay by thousands of dollars.
Another money saver is making bimonthly payments. Paying half of the total on the 15th of the month and then the rest on the 30th accelerates the amortization of the loan and saves money in the long term.
Also, an easy way to save is getting rid of your private mortgage insurance or PMI. It protects the lender if you can't make mortgage payments. But, if the amount of your loan drops below 80 percent of your home's value, you can drop PMI. Experts say you keep paying on that because your lender or mortgage insurance company probably won't inform you that you can drop it.
On new loans, making a down payment of at least 20 percent will allow you to avoid PMI costs.
Improving your credit score will get you a lower rate, which will then lower your payments.
Make a lump sum payment to your mortgage anytime you want. That will also cut thousands off the interest you wind up paying.
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