How to Cut Your Mortgage Payment Without Refinancing

By Gray Group

We know Real Estate. We make finding your perfect home in the right location easy and fun!

Looking for a simple way to reduce your monthly mortgage payment? It might be easier than you think, and there’s no need to shy away from exploring this cost-saving option. Many homeowners are paying for something called Private Mortgage Insurance (PMI), but with a little bit of knowledge and a phone call, you might be able to eliminate this expense.

When you purchase a home with less than a 20% down payment, lenders typically require PMI. This insurance protects the lender in case of default but can add anywhere from $50 to $100 to your monthly mortgage payment. The good news? You might not have to pay this forever.

The process is straightforward:

1. Contact your lender. Simply call your mortgage lender and inquire if you are eligible to remove PMI from your monthly payment.

2. Property valuation. Your lender will review your current loan balance and may use an automated valuation model to determine if your home equity meets the threshold for PMI removal.

Timing is key. If you’ve recently purchased your home, it might be too soon to qualify for PMI removal. However, if you’ve been making payments for a few years, it’s definitely worth inquiring. Increasing property values or additional payments towards your principal could mean you’ve built up enough equity to say goodbye to PMI.

Eliminating PMI can potentially save you hundreds of dollars each year, money that could be redirected towards savings, home improvements, or other financial goals. It’s a simple step that could lead to significant monthly savings.

At Gray Group, we’re committed to helping you navigate the ins and outs of homeownership, including finding ways to make it more affordable. If you have any questions about PMI or other aspects of your mortgage, we’re here to assist. Remember, taking the time to understand your mortgage and asking the right questions can lead to meaningful savings. Don’t hesitate to reach out to us for support on your homeownership journey.