2. Refinance to a Longer-Term Loan
Refinancing to a longer-term loan is actually the easiest way to minimize monthly mortgage payments, especially when cash flow is quite an issue, according to Al Hensling, president of United American Mortgage in Irvine, California. However, it’s really crucial to understand that your interest rate will increase.
To balance this, Matt Hackett, underwriting and operations manager at New York-based Equity Now, recommends making higher payments in order to increase the speed at which you pay down the principal. The vast majority of mortgages have virtually no prepayment penalty. In spite of that, you should definitely check yours.
