Lower Your Monthly Payment

For many people, their mortgage payment is the biggest piece of their monthly budget. And when other expenses increase (like gas, groceries, or medical bills) or emergencies pop up (like unexpected home or auto repairs), homeowners can quickly find themselves struggling to pay their mortgage bill.

To make ends meet, some people may work more hours or pick up a second job. They might cut back on the amount they’re saving for retirement—or stop saving altogether. Increasing the amount of expenses paid with a credit card can also become a common occurrence, but using credit cards can easily lead to more debt and more troubles. So what’s the right answer?

Should You Refinance?

Refinancing is one way for a homeowner to lower their monthly mortgage payment. Consider two types of refinance solutions available through Kish:

• Rate & Term Refinance – lets you switch the rate and terms of your current mortgage with terms that are more favorable. This option is often desirable with mortgage rates are lower than when you secured your initial loan. By taking advantage of lower interest rates, this type of refinance can save a homeowner thousands of dollars over the life of the loan.
• Cash-Out Refinance – uses the equity in your home to give you a new, larger mortgage. The difference between your new loan amount and what you owe on your old mortgage is provided as lump sum cash at closing. This cash can be used to pay off high-interest debt or pay down other loans you may have.

Other Ways to Lower Your Monthly Payment

There are several other ways you may be able to lower your mortgage payment without refinancing:

• Re-amortizing your mortgage can lower monthly payments by extending the terms of your mortgage.
• If you become the recipient of a large cash sum (perhaps through a work bonus or inheritance), you can make extra payments, which lowers your principal and interest, in turn lowering monthly payments.
• If you put less than 20% down on your home purchase, then you were required to have Private Mortgage Insurance (PMI) on your mortgage loan. If you’ve now paid your mortgage below the 80% Loan-to-Value (LTV) Ration, you may be able to remove the PMI premium from your payments.

The best way to explore all your options for lowering your monthly mortgage payments is to talk with an expert Kish lender. Our team has years of experience helping customers find their best solutions, and we’re available anytime to meet in person or by phone. Contact us today start the conversation.