## How to Reduce Your Mortgage Payment
A mortgage is a loan that you take out to purchase a home. The amount of your mortgage payment is based on the loan amount, the interest rate, and the loan term. If you’re struggling to make your mortgage payments, there are a few things you can do to reduce the amount you owe each month.
### Refinance Your Mortgage
Refinancing your mortgage means taking out a new loan to pay off your existing loan. You may be able to get a lower interest rate on a new loan, which will reduce your monthly payment. However, you may also have to pay closing costs on a new loan, so be sure to factor that into your decision.
### Get a Mortgage Modification
A mortgage modification is a change to the terms of your existing loan. You may be able to get a lower interest rate, a longer loan term, or a combination of both. Mortgage modifications are typically only available to borrowers who are experiencing financial hardship.
### Make Extra Payments
If you can afford it, making extra payments on your mortgage each month can help you pay off your loan faster and reduce the amount of interest you pay over the life of the loan. Even making an extra payment of $100 per month can make a big difference.
### Get a Roommate
If you have a spare room in your house, you could rent it out to a roommate. The income from your roommate can help you offset your mortgage payments.
### Sell Your House
If you’re unable to make your mortgage payments, you may need to sell your house. This is a difficult decision, but it may be the best option if you’re facing foreclosure.
## Other Ways to Reduce Your Housing Costs
In addition to reducing your mortgage payment, there are a few other things you can do to reduce your overall housing costs.
* **Shop around for homeowners insurance.** You may be able to find a lower rate from a different insurance company.
* **Reduce your energy usage.** Turn off lights when you leave a room, unplug appliances when you’re not using them, and weatherize your home to reduce heat loss.
* **Get a home equity line of credit (HELOC).** A HELOC is a loan that you can use to pay for home improvements or other expenses. The interest on a HELOC is typically tax-deductible, which can save you money.
* **Get a reverse mortgage.** A reverse mortgage is a loan that allows you to tap into the equity in your home. You don’t have to make monthly payments on a reverse mortgage, but you will have to pay back the loan when you sell your home or move out.
If you’re struggling to make your mortgage payments, don’t hesitate to reach out for help. There are a number of resources available to help you reduce your housing costs and avoid foreclosure.