How to Lower Your Mortgage Payment

With over 400 miles of coastline, Rhode Island, also known as the Ocean State, is a beautiful place to live.  In fact, some reports even name it one of the best states to live in.  Further, some cities and towns in Rhode Island are considered the best to live in throughout America.  For example, Cranston, Rhode Island, has been ranked the 34th best city to live in across America

Unfortunately, Rhode Island can also be a very expensive place to live.  The average housing cost varies depending on where you look in the state, but in Providence, housing costs are 38% more than the national average.

One way that you can reduce your housing expenses is by lowering your monthly mortgage payment.  If you haven’t purchased your home yet, there are a few ways that you can lower your mortgage.  You can:

  • Shop around for the lowest interest rate so you pay less in interest,
  • Shop around for the lowest closing costs, so you pay less up front,
  • Put down a  larger down payment so your monthly payments will be less and you can avoid paying private mortgage insurance (PMI),
  • Increase your credit score so that you can get a better interest rate,
  • Determine which mortgage type will be cheapest for you (for example, adjustable rate versus traditional rate),
  • Buy a house that you can afford so the mortgage payments are a comfortable amount, and
  • Purchase your home in an area with lower real estate taxes so you pay less in taxes.

If you have already purchased your home, you still may be able to lower your mortgage payment.  You can:

  • Apply for a mortgage modification,
  • Refinance your loan,
  • Sell your home and find a more affordable option,
  • Shop around for a lower insurance premium rate, or
  • Get rid of your PMI.

Which method you choose to lower your mortgage payment depends on your particular situation.  For example, you may not qualify for refinancing, or you may not have a large sum of money to put on your mortgage to get rid of your PMI.  Further, you may not want to have to sell your home and leave it.

However, if you are experiencing a financial hardship, and want to lower your mortgage payment because you are having difficulty paying it, a mortgage modification may be a great option for you.  Mortgage modifications work by taking your current mortgage, and changing something about it so that the payment is more affordable for you.

Although mortgage modifications can lower your monthly mortgage payment, they don’t always lower your mortgage payment.  However, mortgage modifications can also be helpful in other ways.   If you want to stay in your home, a mortgage modification can help you avoid foreclosure, or having a short sale.  If you are behind on your payments, a mortgage modification can help you become current without putting a large amount of money upfront.

Applying for a mortgage modification takes a lot of time, involves a significant amount of paperwork, and not everyone is approved.  Because of this, many people choose to hire a mortgage modification professional to complete their mortgage modification application on their behalf.  A mortgage modification professional can explain the process of applying for a mortgage modification, and help you determine if a mortgage modification is the best way to lower your mortgage payment.  Further, if you choose to hire a mortgage modification professional, they can take care of all of the paperwork for you, and speak with your mortgage company on your behalf.

The Mortgage Modification Center

The Mortgage Modification Center, led by Attorney John S. Simonian, has helped numerous families stay in their homes through a mortgage modification.  Attorney Simonian has been helping clients in both Rhode Island and Massachusetts for over 26 years.  In addition to completing mortgage modifications for his clients, Attorney Simonian also practices bankruptcy law and other related matters.  For more information on how Attorney Simonian can help you, call for your free initial consultation at (401) 467-7998.