General Question

boettiger's avatar

How can a person lower their FIXED APR monthly mortgage payment?

Asked by boettiger (123points) August 15th, 2008

OTHER than the following:

- Refinance mortgage at a lower interest rate
– Refinance mortgage at a variable interest rate promotion that ultimately increases or has a balloon payment

Other than the above, are there any other creative ways to reduce a person’s monthly mortgage payment? What about pre-paying taxes and insurance so it is no longer included in the monthly payment?

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8 Answers

Snoopy's avatar

Carving out the taxes and insurance does lower your monthly payment, but it doesn’t really lower how much money comes out of your checking account overall. So it is really an illusion.

Other than what you have already suggested, I can only come up w/ ridiculous smart a—suggestions:

Sell the property. Get someone else to make your payments. Pay off the mortgage.

I will be curious to see if someone can come up w/ something for you….

boettiger's avatar

I can afford the current payment and am current. I just want to give our disposable income a raise so we can use it on other things. :)

Snoopy's avatar

This is a stretch….but you might check to see if there is any kind of discount for paying your annual insurance premium in one lump sum. i.e are you being charged a finance fee for rolling it into you house payment?

SuperMouse's avatar

Make sure that your income tax withholdings are at the right level. If you are getting a huge refund you are having too much taken out in taxes.

boettiger's avatar

They are. I’m looking at reducing monthly expenses. I enjoy living on less and the mortgage payment is the biggest expense so am looking for creative ways.

gailcalled's avatar

Mortgage (payments) is a good debt if you are in the right income bracket and can deduct from gross income.

allengreen's avatar

Yes you can, but it will require a refinance. With out refinancing you are stuck where you are. Also, APR is not the interest rate, but rather a combination of interest (Note Rate) and the fee’s you paid to refinance. APR does not impact your monthly payment, your note rate does.

If you are behind or getting behind you can request a loan modification, but only if you are underwater, or behind. I modified a loan this week at 3% fixed rate, simply because the lender did not want the home as the borrrower owed more than the home was worth.

The final option with out knowing details of your situation is the Mortgage Accelerator, or otherwise called the Aussie Mortgage. It is a first lien, hybred checking and mortgage that will pay off the mtg in 12–16 years without spending more than you are currently paying. One needs to fully document their income for this loan and be under 90% LTV.

Do not be misled by copycat programs that are a Second Lein. PM me for more info if you like.

The Reverse mortgage is ok for folks 62yrs +, but not for everyone.

My suggestion to many of my clients is to rent. I rent a home for 66% less than if I owned it. Real Estate will continue to drop in value for the next 5–7-10 years, so to sell and rent would be the answer you you are not looking for, but it is the answer nevertheless.

Real Estate is a liability, not an asset.

Mizuki's avatar

There are some loan modifications out there now.

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