How to Lower Mortgage Payments

Lower Monthly Mortgage Payments Are Possible!

How to Lower Mortgage Payments

Now is a great time to buy a home, it is what the real estate arena calls a buyers market. If you already own a home, it is a great time to rethink about that current mortgage. Buying a home with a new mortgage or rethinking your current mortgage is a huge investment and it is a decision that needs to be well thought out with lots of planning, a large part of the planning is figuring out the best ways to lower mortgage payments.

Am I expert at this? Definitely not, but I have been looking at our home mortgage loan and have been making tons of phone calls to see if there is a way to lower mortgage payments on our current home. It is incredible how much valuable information can be gained about mortgage loans from talking to a variety of people that work in the real estate and mortgage loan field.

I have been given a lot of different advice on how to lower mortgage payments but there has been two ways that have been consistently mentioned by the mortgage loan representatives that I have been talking to.

One of the ways mentioned to lower mortgage payments is by staying away or getting rid of Private Mortgage Insurance (PMI). If you put down less than the 20% most lenders will require you to get PMI which can substantially increase your monthly mortgage payment. The obvious way to avoid PMI is having a down payment that is more than 20%, however this is easier said than done for most people. A possible alternative to avoiding PMI is what is called a Piggyback mortgage, it is essentially a first loan with a second loan both closing at the same time. Most often, the first loan will be for 80%, the second loan will be for 10% and the buyer comes up with the remaining 10% as a down payment. However, if you do not have 10% as a down payment, some lenders will even allow the second loan to be for 15% or even 20%. Keep in mind, that those lenders are not as easy to find and not everyone will qualify for those terms; however, I feel that attempting to lower mortgage payments is worth the effort.