Paying too much for your mortgage?

How To Lower Your Mortgage Payments In California

When you’re financially struggling, you look for ways to cut back. One of the biggest chunks of your income likely goes to your mortgage. Having a high mortgage payment can leave you with very little left to pay the rest of your regular expenses.

Fortunately there are ways to lower your monthly mortgage payment in California. Overall it’s a good idea to keep your mortgage at less than 30% of your take home salary or pay. With that being said, here are some suggestions we recommend to help reduce monthly mortgage payments in California.

Extend Your Repayment Term

This is also known as re-casting or re-amortizing your mortgage. You don’t specifically have to refinance since it simply lengthens the repayment term. So for instance if you change your 15 year mortgage to a 30 year mortgage, your monthly payment will be less and you’ll have more time to pay off your mortgage over time. You’ll also pay more interest this way, but if you have a cash flow issue and need an immediate solution, this is a cost-effective way to do it.

Make a Larger Down Payment

If you haven’t yet purchased your home and you’re trying to make your monthly mortgage cost more affordable, one way to do that is to make a larger down payment. If you have at least 20% to put down, you also won’t have to pay PMI or private mortgage insurance. If you can afford to make a larger down payment when closing on a home — do it, since this will reduce the amount you pay on your mortgage over time.

Get Rid of PMI

If you put down less than 20% as a down payment when you bought your home, you likely had to pay for private mortgage insurance on top of your normal mortgage payment. Depending on the cost of your home, this could add tens or even hundreds of thousands of dollars to the cost of your mortgage.

There is a solution, though. You can get rid of your PMI if you have at least 20% equity in your home. From there, you can request that your mortgage lender drop your PMI. The lender may send an appraiser to verify how much equity you have in your home, but if they agree that it can be removed, you’ll pay less every month on your mortgage payment.

If you’re still closing on your home, you can also pay your private mortgage insurance up front if you didn’t put the 20% down. Rather than having to pay extra on your mortgage every year, you’ll take care of the PMI by paying a one-time fee.

Refinance Your Mortgage

This is the most common way to lower your mortgage payment is to refinance. This can help you lock in a lower interest rate which can potentially lower your monthly payment. The better your credit, the more you’re likely to save. Right now, rates are very low which means great savings. Even if you think 1% doesn’t matter much in the grand scheme of things, you may be surprised to see just how much you can save!

Taking The Next Steps

If you’d like to know how much you could save by refinancing your current mortgage, or you’re looking for more ways to lower your mortgage payment in California, contact the professionals at LBC Mortgage. Our mortgage and refinancing professionals can help you find ways to reduce your monthly mortgage payments in California. We’ll work with you to help you find the lowest rates and explore your options in detail so that you can save money over time.

Let our experts work with you to help you discover ways to save money that you may not have considered. As the home loan experts based in Los Angeles, we work with a vast network of lenders that are ready to work with you to help you take advantage of current low rates. Contact us on our website or give us a call today to learn more and see how we can help you lower your mortgage payments in California.

Client Reviews

Vassiliy P
Vassiliy P
20:05 04 Jan 22
It's been a treat working with such knowledgeable and caring staff. Always reachable getting back to you with answers you need quick to make these life...
Mikhail K.
Mikhail K.
20:33 27 Dec 21
It was a pleasure working with Alex Shekhtman and his team on another loan. They made it easy and painless. Very professional and efficient. I would gladly...
Anna G.
Anna G.
15:34 21 Oct 21
LBC Team went above and beyond to help us buy our new home! They were available for all of our questions, were prompt in their replies to us, and guided us...
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Julia T.
08:40 22 Aug 21
Excellent team of great professionals! Superb customer service! They have successfully handled our purchase and refinance in a very short period of time,...
Elina L.
Elina L.
11:12 30 Jun 21
It is hard to describe how scary we were when decided to buy a house. We had no knowledge of the processing, prices, policies, calculations… When our agent referred us to Alex Shekhtam, from the first phone consultation we felt to be just in right hands. We are so blessed to have LBC Mortgage team! Our first house was purchased just because of these hardworking, reliable, efficient, responsive professionals! Recently we were able to refinance our house on good conditions, again, just because of them! Easy processing paperwork, knowledgeable advisors, pleasant communication make you feel special. We are so grateful to all and everyone from LBC Mortgage for making our dreams true!!!!
Lora Kochetkova
Lora Kochetkova
03:44 29 Jun 21
LBC Team is now our Number One Team! Their service was impeccable! We really appreciated the detailed explanations and daily reminders throughout the whole...
Galina S.
Galina S.
13:34 29 Mar 21
Alex and his team were very attentive to our needs. We had some very specific criteria when looking for a home, and most mortgage companies, especially banks, were not even willing to listen to us -- but the team at LBC Mortgage was. They kept everything moving and were happy to answer our questions. We never felt like a burden to them, and that’s how customer service should be.
Kaylani paliotta
Kaylani paliotta
05:51 25 Mar 21
If you are shopping online for mortgage or refinance, look no further. Seamless process and good communication. I am pleased with their fast response. They kept me updated with each phase of a process. Thank you LBC Mortgage.
Christiane BABINOT
Christiane BABINOT
07:40 03 Mar 21
I work in construction, so I was used to going to the banks for a loan and being told “no” over and over again. I decided to see if I could bypass the process. I’d heard a lot of good things about this company but I didn’t realize how dedicated they were to helping me until I got to know them myself. They looked at all of my information and got me a great deal for my next project. I know who I’ll be using for all of my home loan needs from this point forward.
Jules Bonchamps
Jules Bonchamps
07:28 16 Feb 21
I’m a real estate broker myself and I consistently rely on LBC Mortgage to get me the best deals. I always know that I can count on Alex Shektman and his team to come through for me when I need them and I even use them myself! No better testimonial to their services than that!
Shane Watson
Shane Watson
04:54 12 Feb 21
I would like to express my gratitude to the LBC Mortage team and personally to Alexander Shekhtman. I turned to Alexander about buying a home: Alexander and his team supervised the whole process very professionally. Personally, in working with LBC Mortgage i liked the punctuality, delicacy and professionalism - any question, any incomprehensible place, was immediately explained and covered. I wish success and good luck to the Agency and its employees in their future work!
Marat Shaimardanov
Marat Shaimardanov
05:16 11 Jan 21
The services were provided at the highest level. They worried about us and delivered information as many times as necessary so that we would all understand) And also a huge plus of this company that I do not really speak English, so I received all the information in Russian, since most of the employees know Russian. I recommend this company
Roman Trach
Roman Trach
12:59 22 Dec 20
We have worked with Alex and his company for many many years and were never disappointed. Just recently they worked on refinancing for our home and again the result exceeded all of our expectations. The team is very professional, on point, makes sure you as a customer, are aware of every step along the way. Everyone is always very helpful and courteous. It was a pleasure to work with Alex and his team again. Thank you!
Alla Krishtall
Alla Krishtall
02:46 23 Sep 20
It’s my second time in 10 years enjoy excellent, very reliable and fast service , strongly recommended to everyone, no hustles and desirable result !!And by the case very professional and friendly stuff !!!
Luna Lovegood
Luna Lovegood
22:36 25 Aug 20

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