Their are a few ways that you could possibly lower you monthly mortgage payment but some of them aren't the best options. You should really make sure you know what you're doing with your mortgage before you set it in stone. Use any type of free interest calculator to figure out your monthly payment now and go from there.

 

Try lowering the interest rate on the mortgage calculator to see how much it will save you per month. Then check all of the other current interest rates for different types of loans because they all offer different rates. And ARM rate is usually the lowest because it's the biggest gamble and the fixed rate mortgage is usually the highest because it's the least amount of risk.

 

If you're desperate to lower your monthly mortgage payment then I would have to recommend an interest only loan against my will. I highly disagree with this loan because of what happens after 5 years. The principal gets added to the monthly payment that you already have. So it's an automatic 200-300 dollars added to your payment in 5 years. In addition to that your interest rate is adjustable so your rate could go up as much as 2% as well. The only way I recommend this option is if you're flipping a home for some reason. Maybe you want to fix it up and sell it which means an interest only loan is a great idea. Other than that there's no reason to opt out of paying principal. I highly recommend using the mortgage calculator on my website to make sure you know exactly what your monthly payment will be and if you can afford it.

 

In order to change your monthly mortgage payment you'll have to refinance no matter what. You can just change an interest rate because it lowered. You'd have to get an adjustable rate mortgage in order for that to happen which means you risk the increase of your rate as well.

 

You can always add extra principal to your mortgage each month so you should get the longest term possible in case you cant afford it in the future for some reason. If you get a 30 year mortgage and a mortgage calculator tells you that you need to pay an extra $200 per month to pay it in 20 years then it would be the exact same thing as getting the 20 year mortgage in the first place. The hard part is forcing yourself to pay the extra money each month. The moral is to try not to get over your head with a monthly payment you cant afford.