Want to lower your monthly mortgage payment?

Tired of paying high interest rates and mortgage payments? First Rate Mortgage can help. We offer a number of refinancing options that can help you take advantage of the best refinance rates in the nation. Interest rates are at an all-time low which means that there is no better time to look at restructuring your home loan than right now.

Benefits of Having a Lower Mortgage Payment

Pay off other debt

Many people lower their mortgage payments in order to pay off debt such as high-interest credit cards, bank loans, car payments, and other financial obligations.

Save money

With lower payments, you can put money away for that rainy day, paying for unexpected medical bills or car repairs.

Easier on the budget

The cost of living has increased while job security has decreased. Perhaps you have had to take a cut in pay or you were laid off and your new job does not pay as well. Lowering your mortgage payment can take off some of the financial stress.

Financial freedom

Lowering your mortgage payment can provide a way for you to reach your goal of financial freedom. You can pay more on your mortgage when you can afford to do so, knowing that the extra payment goes directly to your principle instead of to cover the interest.

How to Lower Your Mortgage Payment

The easiest way to lower your mortgage payment is to go through a refinancing process on your home which can reduce your interest rate and redefine the term of your mortgage as well as your overall payment. There are two options when it comes to refinancing rate and term refinance or a cash out refinance.

Rate and Term Refinancing

This is your typical form of refinancing. When you refinance with this option you are restructuring the insurance rate and the term of your mortgage while your mortgage balance remains the same. You are simply taking advantage of the best refinance rates that are now available to get a lower interest or shorten the amount of time for repayment. For example, if you took out a 30 year loan, originally, you could lower your payments by restructuring the loan to a 20-year loan.

Debt Consolidation Loan

A debt consolidation loan, often referred to as a cash out refinance may not be the best option for lowering your payment. This type of modification pays you cash on the equity of your home but the amount that you take out is added to the principal of the loan. This means that, while you will get a lower interest rate, your payment can increase. It is important to examine all facets of this type of refinancing before taking this route.

Home Affordable Refinance Program (HARP 2.0)

HARP is a program designed to help homeowners who have stayed current in their payments, but the value of their home has fallen. If you qualify, you can create a new mortgage for your home, taking advantage of lower interest rates to lower your mortgage payments.