Do your customers need to find ways to lower their mortgage payment?

There is an easy way to help your customers lower their mortgage payment, just refinance.  But there are actually a lot of other ways that you can help them lower their mortgage payment without having to take that step. Here’s a quick overview of some options you can make available when you need to tell a customer, “Here are some ways to lower your mortgage payment.”

Extend the mortgage term.

Inform your customer of what re-amortizing is and how it involves recasting a mortgage or you extending the terms of their mortgage.  Explain to them that if they currently have a fixed-rate 30-year mortgage, and extend it to 40 years, they would have a lower monthly payment. However, over the term of the loan, your customer would pay more interest (which they may not have considered). While this might not be the right fit for some of your customers, it might be in some cases.

Recommend that your customer looks for cheaper homeowners insurance.

When your customer has a mortgage, typically the cost of their homeowners insurance is collected each month and put into an escrow account.  If it’s been a while since they have selected their homeowner’s insurance, it couldn’t hurt for them to shop around and see if they can find a lower insurance rate. This can be a potentially easy and fairly painless way to lower their mortgage payment without your customer having to refinance.

Re-calculate your customer’s escrow payment.

Has the property taxes for customer gone down or are they paying less than they used to for homeowners insurance?  If so, take the time to bring this to your customer’s attention and then recalculate their escrow payment. You might be able to save them a little bit more each month on their mortgage payment.

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Have your customer ask the county to reassess their property value.

In some counties in the United States, property taxes can be quite high. Paying too much to the county your customer lives in can add potentially a lot to the cost of their mortgage each month. Recommend to your customer that they find out how much the county believes their house is worth.  If they feel it’s too high, have them ask the county to reassess the property value.

Suggest to your customer that they consider applying for a loan modifications program.

Sometimes, life can cause anyone to have more bills each month than income.  If your customer is facing serious financial hardship, then you might want to recommend that they consider applying to loan modification programs. To qualify, they need to be either current on their monthly payment and not able to pay their next payment or no more than 60 days past due on their mortgage payments.  Lenders are willing to work with your customers as long as they apply for the loan modification promptly when they realize that paying their loan isn’t possible this month.

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What have you done to help your customers to lower their mortgage payments?  Our readers would love to hear from you.  Please share your thoughts and idea by commenting below.