When buying a home, it’s important that you never “bite off more than you can chew” in regards to your monthly mortgage payment. Should you do this, you may find it difficult to keep up with payments in the future, thus putting your home at risk of foreclosure.
If your mortgage payment is too high, there are a variety of strategies to consider. Here are just a few that deserve your attention:
1. Refinance Your Mortgage
The best way to lower your mortgage payment is to refinance your loan. By doing this, you end up with a lower payment, thus allowing you to get back on track.
Yes, this typically means that your term will increase, but that’s better than struggling to make your payment every month. You can always refinance again in the future or pay additional money, when available.
Tip: if you’re interested in refinancing your mortgage, contact several lenders to discuss your options. Doing so will help you understand the process, while also ensuring that you secure the lowest possible interest rate.
2. Sell Your Home
It may not be something you want to do, but it could be the quickest answer to your problem.
When you sell your home, you never again have to worry about your mortgage payment. You’re now in position to buy or rent a property that better aligns with your current budget.
Tip: don’t rush to this decision, especially if you love your home. You don’t want to regret your decision to move in the future.
3. Contact Your Lender
Remember this: your lender is in the business of servicing your loan, not managing real estate. For that reason, they’d rather you stay current with your mortgage payments than have to begin foreclosure proceedings.
Contact your lender to discuss your options, such as a short sale or loan modification. They can review your loan, answer your questions, and help you decide what to do next.