Mortgage payments are something that nearly every homeowner in America has to go through, especially with people whose only source of income is as a rentier of a single property. This makes repayments a bit of a hassle, as you have to carve out an entire budget out of the measly rent money, and you have to make sure that the repayment amount comes out of it as well.

So, you might like a break, at least from the high amount of interest that’s tacked onto it. Well, today’s topic of discussion is how to lower mortgage payments without refinancing, and we will also discuss how to decrease mortgage payments, and how to lower car payments without refinancing.

The fact is, that mortgage repayments are kind of draining away at the finances of any family. Since they are low-interest repayments, they might not look that much on paper, but actually shelling out a fixed amount every week or month for the foreseeable future really irks people out, at least the ones trying to get out of the vicious circle that is borrowing and lending, not to mention the interest rates you get.

Fortunately, even in the rigid and humorless world of banking and mortgaging, people are compassionate enough to recognize duress when it presents itself, and therefore allow the borrowers to lower mortgage payments without refinancing. 

How to reduce your mortgage payments without refinancing is a simple task, but one that will require an unfortunate event to transpire. To explain on this further, unofficial guidelines or regulations that lending authorities and banks follow stipulate that only in the event of a dire emergency or financial duress can this option be pursued; if you’re financially able to continue repayments and don’t have other pressing debts or matters to attend to, banks won’t usually entertain any such request for them to lower mortgage repayments. 

The thing to keep in mind before we get into explaining how to lower mortgage payments without refinancing is that mortgage payments, typically, are low-interest amounts doled out over a considerably longer period, than say, credit card debt. Actually, these both are polar opposites; where credit card debt is high-interest, short-term loan, a mortgage is a low-interest, long-term loan, which equates to the bank earning more over the stipulated time period. So, bear in mind that it is only a dire circumstance (provided with proof of said duress) which can convince a bank or lending authority to lower mortgage payments.

Let’s get into it,

HOW TO LOWER MORTGAGE PAYMENTS WITHOUT REFINANCING

There are basically three ways you can go about lowering your mortgage repayments. These are enumerated and explained below,

1. BY EXTENDING THE TERM OF YOUR LOAN

This means that the one way you can lower mortgage repayments without refinancing is by extending the term of your loan, which will automatically lower down the monthly or weekly payments you make to the bank or lender. While this may not be a smart move in the long-term, it will also mean that you don’t get too far behind on your repayments and can actually save the present you from declaring bankruptcy or being unable to make payments. 

You can ask the bank or the lending authority to do so, while presenting evidence that you’re falling behind on the repayments or informing of any impending or current expenditure that has eaten up the budget and will likely continue doing so for the future. This will allow the bank and give them enough leeway to suspend repayments for a few weeks until you’re back on your feet and can continue repayments once again. 

Now, either this period will be added to the current term of the mortgage, or you can work something out with the personnel, like a year extended or even more for the repayments, which will be added to the cumulative term and will automatically lower the mortgage repayments. And of course, this is not refinanced, so you need not worry about raised interest rates or revised home evaluation. 

2. BY USING ADJUSTABLE INTEREST RATES

The second way to lower mortgage payments without resorting to re-financing is by convincing the bank to either lower the interest rate (which is unlikely) or altogether agree on an adjustable interest rate. Although mortgage payments are already low-interest enough, sometimes, when push comes to shove and things get a little bit too hard, even a low interest rate can get pesky and you might want it to go away. So, you can always ask the bank or the lending authority to lower the interest rate or revise it to a lower percentage so that you can continue making the payments with ease. 

Otherwise, it’ll be too taxing on your finances. Of course, for this to actually fall through, you’ll need to prove to the bank that indeed times are a bit tough and the financial outlook isn’t looking so bright now. This whole ‘how to lower mortgage payments without refinancing’ only works after you’ve missed a couple of weekly or monthly payments, after which the lending authority itself will allow you to rework the terms and conditions of the mortgage to ensure that the money flow is not adversely affected.

3. BY CHOOSING A LOWER PMI

PMI is Private Mortgage Insurance, which is the insurance you buy for the loan against the house. It is a very technical concept and requires some assistance from an industry insider, but is fairly common in mortgage proceedings to include this option in the list of options you can use to lower mortgage payments without refinancing. 

ALSO READ: Delayed Financing Mortgage – A Quick Introduction

You can drop your current PMI provider and choose a new plan, one that has again, lower interest rates so that payments aren’t that much of a burden on you. There are other simple options as well, like renting out a part of the house or property to raise more money to be paid off towards the mortgage, but these don’t have very much practicality considering duplexes are really uncommon and don’t hold as a good concept very well. 

WHY LOWER YOUR MORTGAGE PAYMENTS WITHOUT REFINANCING

Re-financing is a complex procedure, and requires a lot of paperwork and appraisals, and is something that can actually end up raising the interest rate on the mortgage or evaluate the property at a lower rate, which can again mean some trouble for the borrower like yourself. Or because a person who’s taken out a mortgage might not be able to afford repayments for the time being, and might be looking for an option that might help them sort their finances out. During such a period of financial duress, a break from mortgage repayments would certainly help a lot, and this is intended to do exactly that.

In a nutshell,

Yes, you can get the lender or the bank to lower your mortgage payments, be they monthly or weekly, without refinancing, as it will not take a toll on your already-disturbed financial situation and will allow you to manage it all out before starting the payments. Aside from these options, you can also try some really simple and in-your-face obvious steps like raising extra money by renting out a room or a portion of the house, so that rent money can be increased to pay off the mortgage.