Are you hoping to lower your monthly mortgage payment, but refinancing isn’t a realistic option? Whether your credit is bad or you are merely uninterested in going through the refinancing process, sometimes your situation makes refinancing an unlikely possibility. Thankfully, there are a few other ways to lower your monthly mortgage payment that does not involve refinancing.
Learn more about how you can lower your mortgage without the hassle of refinancing.
Lengthen Your Mortgage Terms
Re-amortizing (also known as recasting) and extending your mortgage’s length is a good option for lowering your monthly mortgage payment without refinancing. You might be able to extend to a 30-year or even 40-year fixed-rate mortgage, which would drastically reduce your monthly cost. While re-amortizing will result in more interest paid overtime, it is important to keep in mind that extending your mortgage term can significantly benefit those who are financially struggling. Remember, when you recast your mortgage, your interest rate will stay the same; high-interest rates remain high, and lower interest rates remain low.
Drop Mortgage Insurance
When you put less than 20% down on your mortgage loan, you are typically required to have private mortgage insurance. If home values are on the rise, you might be able to drop mortgage insurance sooner than you might think. You might be able to get rid of your mortgage insurance now if your mortgage balance is below an 80% loan-to-value ratio, or, in other words, you reach 20% equity in your house.
Rent Out Space
Sure, this may not be everyone’s ideal situation, but renting a room in your house could be a great way to lower your monthly cost of living. Depending on your location and the condition of your home, you could bring in a few hundred extra dollars or more each month. If you are still not sure this scenario is for you, you don’t need to lock yourself into a yearly lease in the beginning. Try out a month-to-month contract before you commit to a year-long roommate.
Pay a Little More
Wait, isn’t the whole point of this article to lower your mortgage? This option is more of a long-term play. By paying a bit more each month, like rounding up your month’s payment, or making an extra payment each year, you can significantly reduce your loan length over time, thus saving you thousands of dollars. For example, if your monthly mortgage is $985, consider paying $1,000 each month, if you have the cash to spare. Or, you can set money aside each month to make a full extra payment for the year.
Contact Utah Sell Now
If your monthly mortgage payment is too much to handle, you have options! Avoid scary situations, like foreclosure, and sell your home to Utah Sell Now. We want to pay cash for your house regardless of its condition. When you sell to us, you won’t have to worry about cleaning, making any repairs, or renovations. Additionally, you get to pick a closing date that works for you. Contact Utah Sell Now to get a fair, all-cash offer today!