How to Get a
Lower Mortgage Payment

If your mortgage payment is too much to afford, you have options. At Priva Mortgage, we work with borrowers in many different situations, helping them to make their mortgage more affordable.

Homeowners can get a lower mortgage payment by refinancing to either change the loan’s term, get a lower interest rate, or getting rid of mortgage insurance. There are also many ways for homebuyers to lower their mortgage payment too.

6 Ways to Lower your Mortgage Payment

If you’re looking for a lower mortgage payment, here are 6 ways Priva Mortgage can help you achieve your goals.

Refinance into a Lower Interest Rate

If you have a high interest rate right now, consider refinancing. If we can quote you a rate lower than what you pay now, you’ll lower your mortgage payment and save money. We offer the most competitive rates on the market, making it easy to save money.

To get the lowest rate, make sure you have a good credit score, low debt-to-income ratio, and your loan-to-value ratio is as low as it can be.

Consider an Interest-Only Mortgage

If you’re having trouble covering principal and interest right now, consider an interest-only mortgage for the time being. With an interest-only loan, you only make interest payments, not principal payments.

While you’ll have to pay the principal eventually, for the time being, you can save money and stay in your home.

An interest only loan works for both current homeowners refinancing and potential homebuyers.

Make a Larger Down Payment

If you’re buying a home and need a lower mortgage payment, consider making a larger down payment. The more money you invest upfront, the less you have to borrow. This leaves you with a smaller mortgage payment.

We’ll show you the difference between the payments with a smaller and larger down payment so you can determine which is better, including the pros and cons of investing more capital into your home

Extend your Loan Term

If you already own a home, extending your loan term can reduce your mortgage payment. For example, if you have a 15-year loan now, refinancing into a 30-year term can help lower your payment and make your dollar stretch further.

Get Rid of Mortgage Insurance

If you currently have a loan with mortgage insurance, refinancing can help eliminate it. For example, if you have an FHA loan now, you might qualify for a conventional loan with no PMI. If you already have a conventional loan but your home is worth more now, you can refinance to get rid of PMI.

Home buyers can avoid mortgage insurance by borrowing a conventional loan and putting at least 20% down on it.

Try an Adjustable-Rate Mortgage

An ARM loan has a lower introductory rate than most fixed-rate mortgages. You can take advantage of the lower rate for the time being and then decide what to do when the rate adjusts. You can choose from ARMs with fixed-rate lengths between 2 – 10 years.

How to Get a Lower Mortgage Payment