Let’s be honest — your mortgage payment probably eats up a huge chunk of your paycheck every month. And if you could drop that payment by even a couple hundred bucks, wouldn’t that make life a lot easier?
Here’s the deal — your mortgage isn’t as “fixed” as you might think. There are real, practical ways to lower it, and most homeowners never take advantage of them. Imagine having an extra few hundred dollars in your pocket each month — money you could save, invest, or finally use for that vacation you’ve been putting off.
As a Mortgage Broker with over 14 years of experience, I’ve seen firsthand how small adjustments can lead to big results. Here are five proven strategies to help you lower your monthly mortgage payment and put money back in your pocket.
1. Refinance your mortgage
When people think about lowering their payment, refinancing is usually the first option — and for good reason. Refinancing means replacing your current loan with a new one, ideally at a lower rate or better term.
Say you locked in your mortgage at 6.5%, but now rates have dropped to 5.5%. On a $350,000 loan, that single percentage point could cut your payment by roughly $200 a month — which adds up to tens of thousands in long-term savings.
You can also adjust your loan term when you refinance. For example, if you have 25 years left, you can stretch it back to a 30-year term. This spreads out your balance and lowers your monthly payment. Yes, you’ll pay more in total interest over time — but if you’re tight on cash flow right now, refinancing can give you the breathing room you need.
2. Eliminate Private Mortgage Insurance (PMI)
If you bought your home with less than 20% down, you’re probably paying PMI — an extra fee that protects your lender, not you.
The good news? PMI isn’t forever.
Once your loan balance drops to 80% of your home’s current value, you can request to have it removed. Most lenders won’t do it automatically until it hits 78%, so being proactive matters.
Here’s a quick hack:
- Look up your home’s value on Zillow or Redfin.
- Multiply that number by 0.80.
- If that number is higher than your current loan balance, call your lender.
You might need to pay for an appraisal to confirm your home’s value, but if it saves you $100–$200 a month, it’s absolutely worth it.
If you have an FHA loan, the only way to remove PMI is by refinancing into a conventional loan — but even that can free up hundreds of dollars every month.
Need help calculating if you can remove PMI? – Reach out to us to get a personalized assessment (Click this link to start, no commitments!)
3. Shop Around for Homeowners Insurance
Most homeowners overlook this one because we just get used to making the payment without asking questions. But changing insurance companies is one of the easiest ways to lower your house payment.
Your monthly mortgage payment includes PITI: Principal, Interest, Taxes, and Insurance. You can’t change the first two without refinancing, but your insurance? You absolutely can!
Insurance premiums fluctuate constantly and you could be paying for a higher premium or for too much coverage.
Whether your current provider has raised rates or you’re simply over-insured, it pays to shop around.
Take 30 minutes once a year to compare quotes. Ask an independent insurance agent or broker to shop multiple carriers for you. You might find the same coverage — or even better — for a lower price, directly reducing the escrow portion of your monthly payment.
4. Appeal Your Property Taxes
If your property taxes have crept up, this one’s for you.
County assessors often overvalue homes, which inflates your tax bill — and your mortgage payment.
If this is you, make sure to challenge it!
Here’s how:
- Look up recent home sales in your area (known as “comps”).
- If similar homes sold for less than your assessed value, you may have a case.
- File a property tax appeal with your county.
If you’d rather not deal with the paperwork, companies like Ownwell, Abode, or Property Tax Shield can do it for you — and they usually only charge if they win.
Lower taxes mean lower escrow, which directly reduces your monthly payment.
5. Recast Your Mortgage
Most homeowners have never even heard of this one — but it’s one of my personal favorites.
If you come into extra money (a bonus, inheritance, or savings), you can recast your mortgage instead of refinancing.
Here’s how it works: you make a large lump-sum payment toward your principal balance, and your lender recalculates (re-amortizes) your payments based on the new, lower amount.
Your interest rate and loan term stay the same — but your monthly payment drops.
Example: You owe $300,000 and put $20,000 toward the balance. Your new payments are now based on $280,000 — with no new loan, no credit check, and minimal fees.
Not all lenders offer recasting, but if yours does, it’s a simple, low-cost way to lower your monthly payment without changing your rate.
Take Control of Your Biggest Expense
Listen, your mortgage doesn’t have to be untouchable and if you’re looking for ways to lower your payment, do these things before it’s too late.
Because between refinancing, removing PMI, shopping for insurance, appealing your taxes, and recasting your loan — there are real, actionable ways to lower your monthly payment.
Each of these strategies takes a bit of effort, but the long-term savings can be huge. Start with one of these steps today, and take back control of your biggest expense.
📲 If you’re ready to explore your options, give us a call at 770-740-4050 or book a strategy call here with us. Let’s find the best way to lower your payment and keep more money in your pocket.
