Reduce Your Mortgage Payment

Get Help With
Mortgage Modification

Ways to Reduce Your Monthly Mortgage Payments

Principal Reduction:
First lets start off with what you need lowered, then move on to the three main options. First you can lower your monthly payments with a principal reduction. A principal reductions is something that may be for you, especially in this economic climate. Because of the mortgage boom there were a large number of houses built by people who considered this to be a sustainable trend and by people who wanted to take advantage of the market. In order to take advantage or the housing market houses had to be build in mass and when the market dried up, there were too many houses and now that people have lost jobs and excess money there is no one to buy those homes and in some cases the homes that were already bought. This has created an imbalance between supply and demand and has brought housing prices down dramatically.

Interest Reduction:
You can also reduce your monthly mortgage by reducing your interest rate. A lot of mortgages you pay a lot of interest a month, in some cases you may only be paying interest. By lowering the interest you can lower the amount you have to pay and you may even be able to start paying on your mortgage and that would further reduce your monthly mortgage(when your mortgage is adjusted).

Extend Your term:
This may not be the best thing in the long run if you aren't having too much trouble, but you can get your mortgage term extended. This would spread out the payments over a large span of time creating more payment, and because you are still paying on the same principal, your monthly mortgage payment is going to go down.

Here's What You Can Do

Do Nothing:
This is probably the easiest way to reduce your monthly mortgage payments. In order to do this you will have to hope your lender is bluffing and the market is really bad, because the consequences fall right in line with the notion, you get what you pay for. The consequences are eviction, legal prosecution, bankruptcy, possibly late fees and higher overall mortgage because the interest will keep piling up.

Ask the Lender to Reduce the Mortgage Payment Amount:
Asking the lender to ease up is certainly less risky than the first option, but it could end up the same way. Most people when talking to their lender don't know what the lender sees and certainly don't handle this the negotiation in a business manor. In many cases the lender will go for the highest possible thing you can afford and you will likely have to cut down on spending in every other area of your life to a more reasonable, or perhaps just a lower, level. The consequences are that you may not get a good deal and you are not a mortgage professional and this is likely your first renegotiation, so it's not very likely you will even do very well and you may still end up having to be evicted or face bankruptcy, especially if you're finely tuned budget encounters a slight bump in the road. In the long run you may not be any better off. If all you can accomplish is lowering the monthly payments, you will end up paying more in the end, due to a longer term and more interest over all.

Seek Free Counseling:
Seeking free counseling may be for you. If you are a go-getter or have some previous knowledge you may only need a few tips on how to reduce your monthly payments. What will this amount to? That depends on your situation, perhaps you can tell a sad story and get them to reduce your mortgage payments for a while or if you are severely "upside down"(your house is worth less than the mortgage on it) then you may be able to lower that. The consequences are that you are not a mortgage professional and this is likely your first renegotiation, so it's not very likely you will even do very well.

Seek Professional Help:
Seeking professional help can be anything from talking to an accountant who knows what you need to talking to a mortgage modification. Both the accountant and the mortgage professional will know about the lender and what they face in general regarding the property, but the mortgage professional will most likely have had more experience. In either scenario, you are saving in the short run and the long run. What this means to you is a better quality of life. An accountant can help you to try to work your end of the deal and probably wont focus as much on the lender as the mortgage professional will. With a mortgage modification specialist you will pretty much know that you got the best deal you can get and you will be saving much more in the long run and more in the short run, and if you are "upside down"(your house is worth less than the mortgage on it) you may be able to get that reduced. In all honesty this will be the most fair deal. Now for the consequences, it's initially going to cost more. Depending on who you talk to the cost will be more initially than the other options. Compared to what you save, it will likely be the most profitable though, but upfront fees are not something people like to deal with and it is counter intuitive for someone who owes money and is only thinking about paying for next months mortgage. The monthly mortgage and the mortgage over all will be reduced, possibly to the point where you can own the home much sooner than you planned on. In the case the worst case scenario, the professional wont give back the money, as may be the case for counseling, but with mortgage professionals, you are paying for a service and if you don't get that service, it's more likely that you will get some or all of your money back, and then you are back to square one. Be careful and check the business out first though.

Payment Modification
( click here to find out about mortgage modification )

© 2019 Morgage Calculator. Privacy Policy