For many homeowners throughout Metro Detroit, the monthly mortgage payment is one of the biggest expenses each month. The good news is there are several ways you may be able to reduce your payment and improve your monthly budget.

Refinance Your Mortgage

One of the most common ways to lower your mortgage payment is refinancing. This may help you secure a lower interest rate, extend your loan term, or remove mortgage insurance.

Before refinancing, always talk to your trusted lender or loan originator to review closing costs, monthly savings, and your break even point.

Remove PMI or FHA Mortgage Insurance

If your home has increased in value or you’ve built enough equity, you may qualify to remove PMI or refinance out of FHA mortgage insurance.

Many Metro Detroit homeowners are surprised to learn they may already have enough equity to eliminate this extra monthly cost. Talk to your trusted lender or loan originator to review your options.

Appeal Your Property Taxes

Property taxes directly affect your monthly mortgage payment. If your home’s assessed value seems too high compared to similar homes nearby, you may be able to appeal your taxes and reduce your escrow payment.

Shop for Lower Homeowners Insurance

Comparing insurance quotes every couple years may help lower your monthly escrow payment. Bundling policies or updating home systems can also sometimes reduce premiums.

Make Extra Principal Payments

Paying extra toward your loan principal can help reduce your balance faster and save money on interest over time. This may also create future opportunities for refinancing or mortgage recasting.

Consider a Mortgage Recast

A mortgage recast allows homeowners to make a lump sum payment toward the loan balance while keeping the same interest rate. Your lender then recalculates the monthly payment based on the lower balance.

Talk to your trusted lender or loan originator to see if your loan qualifies.

Thinking About Buying, Selling, or Refinancing?

Whether you are buying your first home, refinancing, downsizing, or exploring your home equity options, our team is here to help connect you with trusted local lenders and loan originators throughout Northville, Novi, Plymouth, Canton, South Lyon, and surrounding Metro Detroit communities.