How To Lower Your Mortgage Payment
Agree to a longer mortgage
Many lenders will wave extremely low rates in front of you for shorter mortgages. Fifteen-year and 20-year fixed-rate mortgages are getting better rates than 30-year ones. But why is that? Because the lender is guaranteed to get their money back sooner, which they like. That also means that your monthly payments will be higher, and based on your monthly income, you may not qualify. A lower rate always sounds like a lower payment – and, overall, it does mean you’ll pay less for the loan. But since you’re paying it off in a shorter time, the monthly payments are higher. Run the numbers with different lengths of loans to see what makes sense for you.