Lower Payment

Who doesn’t want a lower payment?

Lowering Your Payment Made Simple

Sounds confusing? Believe us, it’s not.

There are a number of ways to lower your payment and we’ll explore each one of these so that you can determine which option(s) is best for you.

NOTE: If you know what you want, and you just want to get rockin' and rollin', click the Apply Now card on the side.

Back to our regular scheduled programming :)

1. Lowering Your Rate:

Obviously lowering your rate will reduce your payment. It’s a great idea to lower your rate; however, you can accomplish this task a couple of different ways. Let’s take a look…

a. Find a Lower Rate: It is as simple as it sounds. Just look for a rate that is lower than your current rate…..VOILA!! Lower payment. Hint: We’ll make this search real easy for you. Loan Simple is the lowest :)

b. Buy a Lower Rate: Buying a lower rate, or paying a discount point, can be an incredible tool for getting the absolute LOWEST rates on the market. It’s important to weigh out the cost of a discount point against the savings.

NOTE: (Is this confusing? If you're feeling a little lost just get with your Loan Guide. There are no stupid questions and our Loan guides have the answers).

2. Extend Your Term:

In addition to lowering your rate, increasing your term can also drop your payment. For example, if you’re currently in a 15yr Fixed mortgage, and you refinance the balance into a 30yr Fixed term, you will now be scheduled to pay the remaining balance off over 30 years. As you would imagine, this will drop your payment a significant amount. However, we need to examine two important points when considering this option.

a. Paying Off Your Home: Generally speaking, someone that chooses a 15yr mortgage is motivated to get their home paid off as soon as possible. However, sometimes this goal places a serious strain on our monthly budget.

b. Interest over Time: It is also important to note that when you take 30yrs to pay off your mortgage you will pay a considerably larger amount of interest than someone paying off their home in 15yrs (Assuming of course that the interest rates are comparable). However, it’s important to note that a 30yr can be paid off in 15yrs (or really any term you choose) provided you make capital reduction payments

NOTE: Capital Reduction Payments is just a fancy way of saying additional payments from time to time, or on a regular schedule.

3. Adjustable Rate Mortgage (ARM):

The adjustable rate mortgage is another fantastic program which can provide you with a sensationally low interest rate. Like anything else, you need to examine the program to see if it is right for you. The (ARM) is generally only fixed (fixed rate) for a short, but defined, period of time. If you are comfortable with watching the market a bit, and refinancing once the fixed term is over (if it makes sense…sometimes rates are lower and your payment adjusts down), than an (ARM) may be the right program for you.

NOTE: Check out our Calculators, or contact your Loan Guide, to see if the ARM makes sense.

4. Interest Only Feature (IO):

Some loan programs have a feature in which you’re only responsible for the interest portion of your payment. This, coupled with a great rate, can provide you with possibly the lowest monthly obligation on the market. It’s a marvelous tool for someone who knows they won’t be staying long in a home, or someone who plans to fix and “flip” the home in a short period of time.

NOTE: Check out our Calculators, or contact your Loan Guide, to see if an I/O Loan makes sense for you.

Simple Summary

All of these methods work quite effectively at lowering your monthly payment. Some programs allow for you to utilize all four features listed above. It depends on your goals and what makes sense for you as to which avenue you should travel.

Lowering your payment is EASY with Loan Simple. Get started today lowering your payment.

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We are here to serve you.  We'll be happy to go over all of our loan products to provide you with exact payment scenarios for each loan type. We'll find the right loan using all of our loan programs so you can start saving now.

It has never been so easy. We've pulled together simply the best set of tools to help you determine what loan is best for you. You can compare rates, programs, terms, or just figure out what works within your budget. Check them out!

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