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The largest expense for most households is the mortgage payment, which is typically 28 percent of your income before taxes. Most people would enjoy paying less each month towards their home loan to free up their budget. When you want to lower your mortgage payment, there are a few different ways to pay less.

1. Extend the Term of the Loan

According to, you can add extra years to your repayment term to lower your mortgage payment without having to refinance your mortgage. Although you may need to pay your lender an average of $250 for this service, it can allow you to add an extra decade to the loan. The option is an ideal choice if you’re a borrower that needs more money immediately and are considering refinancing in the upcoming years.

2. Contribute More Money Towards the Principle

Making extra payments towards the principle on your mortgage each month can allow you to obtain a lower payment gradually. Those who can afford it can consider making double payments for an entire year to spend less on interest and reduce the amount of money that is owed on the principle. Making extra payments may not be an ideal situation or attainable for some households, but is possible if you receive a bonus or have two people in the home who work.

3. Challenge the Tax Assessment

According to, you can challenge the tax assessment. Many of the assessments are too high and are based on how much the land and house are worth. The assessment is likely inaccurate if the area has been rezoned, which can cause the price of your house to decline.

You can protest the assessment through the county or by scheduling a hearing through the state Board of Equalization. Your taxes on your home will immediately be reduced if your protest is approved, which can allow you to save potentially hundreds of dollars on your mortgage payment each month.

4. Rent Out Your Home

If you’re struggling to make payments on your mortgage each month and are afraid of losing the property, consider renting out a room to lower your payment. You can also rent out a backhouse if it’s up to code, which can make it easy to afford the house and continue owning it long-term by finding the right tenant.

5. Drop Your Private Mortgage Insurance

You can drop your private mortgage insurance by repaying more of the mortgage payment to attain more than 20 percent equity on the house. Homeowners are required to obtain the insurance if they put less than 20 percent down on the property when it was purchased. Contact your lender to ask about additional steps that you may need to take to drop the PMI to reduce what you pay on your mortgage by hundreds to thousands of dollars throughout the year. You may need to have an appraiser visit the property to determine if you currently have more than 20 percent equity on the home to adjust your mortgage payment.