There are many reasons to lower your payment. If your expenses rise because of your growing family or maybe you take a cut in income, lower monthly payments can be a great benefit.
Lower your Payment by Changing Your Loan Terms
Both the interest rate and the term of your loan will affect your monthly payment.
Use our refinance calculator to see how a change in rate and/or terms will affect your monthly payment.
Popular Methods for Lowering Your Monthly Mortgage Payment
- If you have less than 30 years on your current mortgage, refinancing into a new 30-year mortgage
- If you currently are paying monthly MI (Mortgage Insurance), you may be able to cancel it by refinancing.
- Refinance into an Adjustable Rate Mortgage. The rate will be fixed for the first 5 to 7 years before it becomes adjustable.
How to Determine Your Equity
As time passes and the value of your home increases, the amount between your current mortgage balance and the current value of your home is equity.
The more equity you have, the lower your interest rate.