5 practical tips for homeowners

Mortgage payments take more than a third of the model American family income, according to the National Association of Q2 2025 for home builders/WELLS FARGO, the cost of housing. For low -income families, the monthly mortgage payment is much higher than their salaries. Reducing your monthly payments can prevent you from being poor at home and freedom of cash flow of other expenses.

Ashley Morgan, a bankruptcy and debt lawyer in Ashley F. said. Morgan Le Locke, for bankruptcy and debt in Ashley F. Morgan Lu, “Paying your mortgage is your biggest expenses every month.” “Finding a way to reduce your mortgage payment is an ideal goal to help your budget.”

There are several ways to reduce your monthly bill, but the best convenience depends on your personal money and the stage in life. Make sure to weigh what is reasonable for your position to make the best decision for you and your family.

Best for: home owners good credit

When re -financing your mortgage, you can replace your current home loan with a new loan. Just as you bought the house, you may need to qualify and apply with a mortgage lender. You will also have to pay the closing costs again.

The high credit degree can help you secure a low mortgage rate, which directly reduces the monthly payment.

For example, monthly mortgage over 30 years and $ 350,000 at a price of 6.5 % is $ 2,212. Funding to a 5.5 % interest rate reduces the monthly payment to $ 1987 – which saves you about $ 225 per month.

You also have the option to change the length of your loan. The mortgage usually comes for 30 years with less than 15 -year mortgage payments. Therefore, let’s say that you have 25 years in the loan period for 30 years. By re -financing it to another 30 -year mortgage, you can reduce your payments more than that.

However, the timer for the longer payment will cost you more benefit over the loan period. It also adds years to your payment schedule, so it will be longer until you own the house directly.

Best for: homeowners with a surprise, a critical surprise

With the mortgage reorganization, you can make a cut batch that reduces your home loan manager. The lender then re -calculates your monthly payment based on the low balance. You will pay less every month and keep the same interest rate – a great benefit if you have already been locked at a low rate. You will also keep your current term instead of re -financing to a longer or shorter term.

Here is an example in the form of a mortgage reformulation.

• Suppose you have a 30 -year real estate mortgage and $ 400,000 at a rate of 6.5 % and a monthly payment of $ 2528.

• Five years later, your balance is 373,944 dollars, and you decided to put a heritage of $ 50,000 towards the mortgage manager, which reduces your existing balance to $ 323,944.

• Drafting your mortgage based on this lower manager also reduces your monthly payment from $ 2528 to $ 2,187, which leads to monthly savings of $ 341.

It can require a great investment to be worthy of attention. Not all real estate loans (for example, you cannot reformulate the FHA, VA or USDA), and not every lender it offers. Those who make a reformulation may impose fees.

Best for: homeowners with PMI and 20 % of shares

Special Mortgage Security (PMI) usually costs between $ 30 and $ 70 per month per 100,000 dollars borrowed, according to Freddy Mac. This means with a loan of $ 350,000, which may pay from 105 to 245 dollars per month, only in the purchasing manager index.

You will usually pay for PMI if you get a traditional mortgage and pay an introduction less than 20 % when I originally bought the house. However, you can cancel it as soon as you have 20 % of the shares, whether through the value of the house estimated or payment of the manager.

The PMI ends automatically when your balance reaches 78 % of the estimated original value (which means you have 22 % of the shares). However, you can ask for your mortgage lender to remove your purchasing manager index early-lower your batch soon-to reach the stock sill, and the payments on time, and you do not have a second real estate mortgage or other privileges.

The best for: homeowners who have no insurance claims

According to the National Real Estate Mediators, the average annual insurance premium for homeowners in the United States was $ 2,377 in 2024 – approximately $ 200 per month. If you have made claims or live in areas with severe weather, your insurance installments may be higher.

To reduce this cost, start by asking your provider about the available discounts. You can also modify the policy by increasing your opponent, if you don’t add much risks. Finally, compare the current insurance rates with the rates of competing insurance providers and the good reputation. Shopping about homeowners securing helps you get the best deal.

Best for: homeowners who have excessive home values

The tax residents evaluate the values ​​of home regularly to determine the amount of what the owners will pay in property taxes. This process can occur annually or once every few years, depending on where you live.

Sometimes homes are honored, which means that they have been set a higher market value than the house is worth. If this is the case, you may pay too much in property taxes.

Morgan said: “The resumption of your property taxes is possible, but often difficult,” Morgan said. “You can try to challenge the tax evaluation … However, in my experience, most tax assessments are less than a fair market value.” In her experience, home owners’ calls are rarely successful.

However, if you think your tax evaluation is very high, you can submit an appeal with your local tax resident. You may need to provide evidence of the value of your home, such as evaluation, similar sales or records that separate the properties. Call the local taxes to start the operation.

If you are having a problem keeping up with the monthly mortgage payments, contact the lender first to discuss a full set of options. Below some of them may mention.

• Loan modification: The mortgage loan is permanently adjusted to modify your loan terms if you can show financial hardship. The lender may reduce your interest rates, prolong the term, or even reduce the main balance.

• Patience of mortgage real estate: You may qualify to stop or temporarily reduce mortgage payments. But you will need to pay any deferred payments as soon as the patience period ends.

• HUD Consulting: The US Housing and Urban Development (HUD) with local housing agencies to advise and may help you avoid mortgage. Find a local agency to find out what is available near you.

Yes, the mortgage re -financing can reduce your monthly payment. If you are eligible, you can refinance in a new loan at a lower interest rate, which directly reduces your bill and the total paid interest. You can also choose to prolong your loan. This increases what you will pay for interest over the loan period, but your monthly payment may be much lower.

If re -financing is not good, think about reformulating the mortgage. By reformulating, you can make a large piece of cut and spread the remaining balance of your loan. You can also search for ways to reduce insurance premiums for homeowners or resume your property taxes (if your home is estimated).

House owners who cannot withstand the costs of mortgage payments must contact the lender first to understand their options. If you suffer from financial hardship, you may qualify for the program to modify loans or patience or provide advice through a local housing agency.

Laura Grace Tarby This article has been edited.