How Can I Lower My Mortgage Payment Without Refinancing?

By Shelby Campbell

With over two and a half decades of unwavering commitment to the mortgage industry, I am your seasoned Mortgage Loan Officer dedicated to helping individuals and families achieve their homeownership dreams.

Struggling with high mortgage payments but want to avoid refinancing? You’re not alone—and luckily, there are smarter, often-overlooked ways to slash your monthly bill without the hassle of refinancing. Whether you’ve built up some equity, have a bit of savings set aside, or suspect your property taxes are too high, there are steps you can take that could make a real difference in your budget. Here are three ways you can lower your mortgage payment without refinancing:

1. Recast your mortgage. If you have a lump sum saved, you may be able to apply it directly to your loan principal and request a mortgage recast. Your lender will recalculate your monthly payment based on the reduced balance, but your interest rate and loan term stay exactly the same. There’s no need to refinance, go through a credit check, or start a new loan. This option lowers your monthly payment without the hassle or cost of refinancing. But also remember that not all lenders offer mortgage recasting, and you’ll need to have a significant amount of cash on hand to qualify.

2. Challenge your property taxes. If your mortgage includes escrow for property taxes, an inflated home assessment could be making your monthly payment higher than it needs to be. By appealing the assessed value through your local assessor’s office, you can lower your tax bill and, in turn, your monthly mortgage payment.

The savings can last for years, but the appeal process may require paperwork, meeting deadlines, and possibly even getting a professional appraisal. Still, if your property seems overvalued, it’s worth taking the time to check.

3. Eliminate PMI (Private Mortgage Insurance). If you purchased your home with less than 20% down, there’s a good chance you’re paying private mortgage insurance (PMI) each month. Once you’ve built at least 20% equity—either by paying down your loan or through home appreciation—you can request that your lender remove it. Getting rid of PMI can lead to immediate savings, potentially hundreds of dollars each month. While most lenders will require a new appraisal and formal approval, the long-term savings usually make it a worthwhile step.

If any of these options sound like a good fit but you’re not sure where to start, I’d be happy to walk you through your choices. Just call, text, or email me, and we’ll figure out the best way to lower your mortgage payment together.