How Do I Lower My Payments?
Refinancing can be an effective way to lower monthly payments. Before you refinance a home to lower payments it's a good idea to:
- Review your entire financial picture
- Evaluate your short- and long-term goals
- Consult a tax or financial planning professional
There may be a number of different loans that can help you lower your payment; the right decision depends upon your current situation as well as your short- and long-term goals.
Review your entire financial picture
Do you want to only lower your monthly mortgage payments or do you want to lower all of your bill payments? Do you need to finance home repairs or college education in the near future? Some homeowners choose to refinance a home loan solely to lower the mortgage payments. Others choose to refinance to consolidate debt and get cash for needed expenses.
Evaluate your short- and long-term goals
Circumstances change over time and your short-term goal may be to lower your payments while your long-term vision involves something entirely different. You need to determine your short- and long-term goals to see whether refinancing a loan can help you meet them.