Back to Blog

Save Some Money: A Guide to Lowering Your Monthly Mortgage Payment

Sammamish Mortgage
Published:
May 5, 2015
Last updated:
October 12, 2021
Save Some Money A Guide to Lowering Your Monthly Mortgage Payment
In This Article

If you are like many other homeowners, your home mortgage payment is the single largest expense in your monthly budget. This is a fixed expense that you will typically be responsible for until your loan is paid in full or until you sell your home, and you may have a 15, 20 or even 30 year term on your mortgage.

If your home mortgage payment has become unaffordable or burdensome for you to manage with your current financial situation, rest assured that you may be able to save some additional cash each month without selling your home.

While you can always automate your savings, cut back on spending, and pay down your current debt to save on interest payments, there is another way to save: by refinancing your mortgage. Refinancing your existing mortgage can provide you with important financial benefits to help you better manage your budget.

How Refinancing Lowers Your Mortgage Payment

Refinancing your existing mortgage essentially will replace your existing loan with a new loan, but you may not understand how this will result in a lower mortgage payment. When you initially applied for your current mortgage, your payment was fixed based on the interest rates at the time as well as the original loan balance.

Since that time, you likely have reduced your loan balance considerably, and interest rates may be improved as well. In fact, mortgage interest rates are hovering near historic lows over the past few months, making now the ideal time to refinance and lock in at a much lower rate.

As of the time of this writing (February 2021), mortgage rates for a 30-year fixed-rate mortgage are 2.86%. That’s extremely low and presents a prime opportunity for both new homebuyers and those who are looking to refinance.

Some homeowners are able to refinance to a lower rate as well as pull equity out of their home in the process.

View Current Mortgage Rates Oct, 21, Thu, 2021

How Home Equity Could Further Reduce Monthly Expenses

While your main goal for refinancing a home mortgage may be to reduce the large monthly mortgage payment that you are responsible for, the fact is that you may be able to use your home equity to further reduce your monthly expenses.

For example, you can use extra funds provided to you through a refinance to pay off an outstanding student loan, a car payment or a credit card balance. Some homeowners may even be able to pay off most or all of their debts by tapping into their home equity.

It is common for homeowners who have a high and unmanageable mortgage payment to feel overwhelmed and even trapped by their financial situation.

However, as you can see, lowering your mortgage payment and even reducing some of your other expenses may be easier to do than you might think. If you are interested in learning more about how refinancing your mortgage may help you to improve your financial situation, you can speak with an experienced mortgage professional today.

Get an Instant Mortgage Rate Quote Today

Have Questions About Mortgages?

Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado. Since 1992, we have been helping borrowers get approved for a variety of mortgage programs, and we’d love to help you too. Please contact us if you have mortgage-related questions.

Other Blogs You May Like
Factors That Affect Home Mortgage Rates Factors That Affect Home Mortgage Rates
October 12, 2021

One of the most important factors to consider when applying for a mortgage is the interest rate that you’ll be charged. Your rate will have a direct impact on your monthly mortgage payments, as well as how much you’ll end up spending on your mortgage overall. For this reason, it’s helpful to understand home mortgage rates and the factors that affect them.

Read more
The Most Important Factor On Your Mortgage Rate: Credit Score The Most Important Factor On Your Mortgage Rate: Credit Score
October 12, 2021

There are many factors that impact your ability to secure a mortgage, and your credit score is one of them. This article will outline why credit scores are so important when it comes to mortgages and why you should ensure…

Read more

Show 19 more posts
from this category

Begin your home loan process today! Our mortgage advisors are standing by. Request a free personalized rate quote. (425) 401-8787