How To Lower Your Mortgage Payment

Apr 12, 2024

5-minute read

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Looking for extra breathing room in your budget? Lowering your mortgage payment can be a great way to free up funds for other financial commitments.

Let’s look at all the ways you can save money on your monthly mortgage payment.

1. Refinance With A Lower Interest Rate

A lower interest rate can mean big savings. For example, on a $200,000 30-year-fixed loan, reducing the interest rate 1% can mean a monthly savings of almost $120.

If you’re looking to lower your mortgage payment, keep an eye on the market. Look for rates that are lower than your current interest rate. When mortgage rates drop, contact your lender to lock your rate.

Another way to get a lower rate is to buy down your rate with points. Mortgage discount points are upfront prepaid interest paid as a part of your closing costs to get a lower rate. Each point is 1% of the loan amount. For example, on a $200,000 loan, one point would cost you