5 Ways to Lower Your Mortgage Without Refinancing in New Hampshire

An easy way to lower your mortgage payment is through refinancing, but this is not always an option for every homeowner.

Fortunately, there are several ways you can lower your payment without having to jump through refinancing hoops. 

Continue reading to learn five helpful ideas that can save you money on your mortgage each month.

1. Recast Your Mortgage 

A mortgage recast (also known as re-amortizing) is a great way to lower your monthly payment by extending your payment term. You will not need to refinance your mortgage to do this because most lenders offer this service for a small fee. 

Extending your term to 30 or 40 years can significantly lower your payment. You will end up paying more interest throughout the loan, but your monthly payment will decrease. This can help those who are struggling financially and are at risk of foreclosure. 

Rules and fees associated with a mortgage recast vary by lender, for example: 

  • You might have to make a few monthly payments in a row at your current payment amount to qualify for recasting.
  • Paying off your principal by a certain amount could also be required before recasting.
  • The lender may charge a fee, typically around $250.

2. Re-Calculate Your Escrow Payment 

You can have your mortgage company recalculate the amount you owe towards your escrow account, which pays for your homeowner’s insurance and property taxes. This amount is adjusted each year, so you could save money if your insurance or tax rates have decreased.

3. Appeal Your Tax Assessment 

If your mortgage has an escrow, property taxes make up most of that payment each month. 

These taxes are reassessed each year based on the value of your home and they vary between states. If you think your home’s value is lower than what the county declares, you can appeal the tax assessment. Verify that they have everything accurately listed, including; 

  • Square footage
  • Number of bedrooms and bathrooms
  • Acres of land 

If the dispute is approved, your taxes will decrease along with your monthly mortgage payment.

4. Apply for a Federal Loan Modification Program 

If your financial situation is dire, you may qualify for a loan modification. This process involves changing the original terms of the loan without refinancing. These changes can include: 

  • Lowering the interest rate
  • Extending the length of the loan term
  • Reducing the principal amount
  • Postponing payments temporarily

5. Drop PMI 

If you bought your home without putting 20 percent down, part of your mortgage goes toward Private Mortgage Insurance (PMI). This can be very costly; however, there is a way to get rid of PMI. 

Once you have paid enough of your mortgage that you have gained at least 20 percent in equity, you can request your lender drop the PMI. This may help lower your mortgage payment by a substantial amount. 

Sell Your Home Fast with NH Home Buyers, LLC 

If you want to lower your mortgage by selling your home and starting fresh, NH Home Buyers will buy your house as-is and put more cash in your pocket. From Amherst to Atkinson, to Bow and Dover, we buy houses in the Southern New Hampshire area and can offer you a fair price for your property without fees or commissions. Our process is quick, and you will walk away with a check in-hand soon to apply to a new home. Connect with us to get started today.

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