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How do I lower my house payments?

How to Lower Your Monthly Mortgage Payments

Nothing is forever, not even a mortgage. Eventually, you will pay off even that 30-year loan, and the home will be all yours. In the meantime, there are a few things you can do to lower the amount you pay towards your home every month.

Refinance Your Home Loan

When you refinance your loan to a lower rate or a longer term, you can lower your monthly payments. But be careful of all the terms and conditions that come with a refinance. Refinance fees and closing costs could end up costing thousands up front, just to lower your monthly payment a little bit. If you cannot recoup the cost of the loan within 24 months, a refinance might not be the best idea. To calculate the time it will take to break even, divide your monthly savings by the total cost of the refinance.

Eliminate Primary Mortgage Insurance

Without a 20% down payment, you’re likely going to pay Primary Mortgage Insurance (PMI) until the home loan reaches 78% of the original balance. PMI is insurance you pay that protects the lender if you default on the loan. PMI payments usually cost up to 1% of the entire loan per year.

If your original home loan was $400,000, your PMI would be $4,000 per year, or just over $333 per month.

To remove the PMI, try to pay down the loan to 78% of the original balance. This might take some time depending on your financial situation. Or, if your home has gone up in value due to an increase in nearby home prices, you could request that the PMI be removed. Simply call your lender and ask for an appraisal on the property.

If your hunch is correct, your lender may be able to request removal of ofthe PMI from your loan.
But, you could be responsible for the appraisal fees.

Get New Homeowner’s Insurance

When you have a home loan, you also have homeowner’s insurance. Every couple of years, shop around for similar coverage at a lower premium. It could save you quite a bit every month, since those insurance payments are likely lumped into your overall home loan.