3 Ways To Lower Your Mortgage Payment Without Refinancing

By Gregg Tepper

I have been married to my wonderful wife Letha for 29 years. We have 3 children: Max, Alexander and Charlotte. I have been a licensed Realtor in the New Orleans area for 20 years and am the Operator of The Tepper Group with Keller Williams Realty in Mandeville. Our team services the entire New Orleans and Baton Rouge metro areas. Our team of partners has well over 40 years of experience. In 2024 we helped 132 families buy, sell and lease homes, land and commercial investments.

Most homeowners think their monthly mortgage payment is set in stone unless they refinance. But that’s simply not true. With today’s higher interest rates, refinancing is no longer an option for many, leaving people feeling trapped by high monthly payments. The good news is, there are smarter, often-overlooked ways to reduce your monthly bill without changing your rate or restarting your loan. Here’s how to take control.

Why your payment might be too high. Beyond your principal and interest, your fee includes escrow items like property taxes and insurance (including PMI). If any of these components are inflated, you’re overpaying. Many homeowners accept these costs without question, but proactive strategies can lead to significant savings.

Strategy 1: Recast your loan. If you have a chunk of savings, you can make a large lump-sum payment toward your principal and ask your lender to “recast” or re-amortize your loan. This recalculates your monthly payment based on the new, lower balance, while maintaining your interest rate and loan term unchanged. It’s a no-fuss way to lower your payment without the credit checks or closing costs of a refinance.

Strategy 2: Appeal your property taxes. It’s easy to assume your tax assessment is correct, but mistakes happen. If your home is overvalued by the assessor, you’re paying too much. You have the right to appeal the assessment to your local assessor’s office. A successful appeal can lower your property tax bill, which in turn lowers the escrow portion of your mortgage payment—a saving that lasts for years.

Strategy 3: Remove private mortgage insurance (PMI). If you put down less than 20% when you bought your home, you’re likely paying PMI. This is an extra fee that protects your lender, not you. Once you reach 20% equity in your home, either through paying down your mortgage or through appreciation, you can request to have PMI removed. This can instantly reduce your monthly payment by $100 to $300 or more.

Taking the next step. A lower mortgage payment is within reach. The best strategy for you depends on your equity, savings, and local tax rules. If you’re not sure where to start, I can help you review your options. To find out which of these strategies could save you the most money, call (985) 789 8717, email TGroup@kw.com, or visit www.FindNolaHomes.com. Don’t just manage your mortgage; master it.