Ways to Lower Your Mortgage Payment Without a Refinance

Not everyone wants to refinance

Mortgage payments are the largest monthly expense for most Americans. A refinance can lower those monthly payments and free up your household budget. But with mortgage rates back at historic norms, mortgage refinancing won’t make sense for everyone.

The good news is that there are ways to save on your mortgage payment even without a refinance. And there are also ways to save on total interest over the life of your loan. Here’s what to do.

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Ways to lower your monthly payment without a refinance

A mortgage refinance replaces your current loan with a new one. The new loan typically has a lower rate and smaller monthly payment — but it also comes with closing costs. And in today’s interest rate environment, lowering your rate may not be an option.

Fortunately, there are strategies you can use to lower your monthly mortgage payment without changing your current loan or incurring closing costs.

Here are four ways to lower your mortgage payment without refinancing. 

1. Cancel your mortgage insurance

If you put down less than 20% when you bought your home, odds are you’re paying for private mortgage insurance (PMI). Most homeowners who used a low-down-payment conventional loan have to pay PMI until their loan amount is paid down ot 20% of the value of their home.

Once your loan amount falls to 80% of your home’s value, your lender no longer needs the protection of mortgage insurance.

Rising home values can help you reach this magic 80% threshold a lot sooner, and values have risen a lot over the past couple years. You may be in position to cancel your PMI as soon as right now, saving $100, $200, or more each month.

How to cancel PMI:

The first step is to contact your current mortgage…

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