Are you struggling to make your monthly mortgage payments? If so, you’re not alone. In fact, many homeowners are finding themselves in the same boat.
Having trouble making your mortgage payments can be extremely stressful, but there are some things you can do to ease the burden. Here are seven tips to help reduce your monthly payments for your mortgage in Ohio or wherever you are located:
- Get a shorter-term loan.
If you can afford it, one of the best ways to reduce your monthly mortgage payments is to get a shorter-term loan. For example, if you have a 30-year mortgage, switching to a 15-year loan will significantly reduce your monthly payments. This is because you’ll be paying off the loan much faster, so there’s less interest accruing over time.
- Refinance to a lower interest rate.
If you can’t afford a shorter-term loan, another option is to refinance to a lower interest rate. This will lower your monthly payments, although it will also extend the length of your loan.
- Make biweekly payments.
Making biweekly payments instead of monthly payments can also help reduce your monthly mortgage payments. When you make biweekly payments, you’re essentially making one extra payment per year, which can help pay off your mortgage faster and reduce the amount of interest you pay.
- Make a lump-sum payment.
If you come into some extra money, such as through a bonus at work or a tax refund, consider making a lump sum payment on your mortgage. This will reduce the principal balance of your loan, which will in turn lower your monthly payments. When making a lump sum payment, just be sure to specify that the payment is to be applied to the principal balance of your loan.
- Get rid of private mortgage insurance.
If you have private mortgage insurance (PMI), getting rid of it can lower your monthly payments. You can usually get rid of PMI once you’ve reached a certain loan-to-value ratio, which is typically around 80%. The easiest way to get rid of PMI is to refinance to a conventional loan.
- Get help from a housing counselor.
If you’re struggling to make your mortgage payments, don’t be afraid to seek help from a housing counselor. These professionals can assist you in developing a budget, negotiating with your lender, and exploring different foreclosure prevention options. The sooner you seek help, the better your chances of avoiding foreclosure.
- Consider a loan modification.
If you’re still having trouble making your mortgage payments after trying all of the other options, you may want to consider a loan modification. This is a change to the terms of your loan that can make it more affordable. For example, your lender may agree to lower your interest rate or extend the length of your loan.
Making your mortgage payments can be a struggle, but there are ways to make it more manageable. Try one or more of the tips above to reduce your monthly payments and ease the financial burden. You can also talk to your lender about other options that may be available to you.