As a homeowner, chances are your mortgage payment is by far the largest bill you have to pay each month. For some, this bill can mean the difference between living a comfortable life and living paycheck to paycheck.
Regardless of where you fall, if you lower your mortgage payment you can save more money every month or start saving money in the first place.
But what are the best ways to lower your mortgage payment? Is this even possible?
The answer is yes. You can lower your mortgage payment with a little bit of effort on your part. And in this post, I am going to share with you 9 overlooked tips to reduce your mortgage payment.
You can choose one of these tips or combine a few to make a huge reduction in the cost of your mortgage.
Let’s get started so you can saving money today!
9 Overlooked Tips To Lower Your Mortgage Payment
#1. Refinance To A Lower Interest Rate
The most common way to lower your mortgage payment is to refinance your loan. When you refinance to a lower interest rate, you will save money over the long term.
For example, let’s say you have a $225,000 loan at 4% for 30 years. You are paying $1,074 a month for your mortgage.
If you refinance this at a 3.5% interest rate for 30 years, you will be paying $1,010 a month for your mortgage. You just saved $65 a month or $780 a year.
While some of you might not think this is a lot of money, don’t overlook the interest savings. By refinancing the example above, you will save close to $23,000 in interest charges.
Here is a nice calculator to play around with to see how much money you could save by refinancing your mortgage.