Read Time: 2.5 Minutes

Interest rates are higher than the last time any of us went through a renewal. 

Many homeowners feel stretched financially. 

There are legitimate concerns about the economy. 

As a result, people worry about choosing the right mortgage for their finances. 

If you’re up for a mortgage renewal now, and the payment is daunting, there are ways to cut it back.

Here are three strategies to consider. 

They could help you get your mortgage payment lower than what your lender offers at renewal.

Now, let’s dive in.

One way to lower your monthly mortgage payment is to extend your amortization period.

Your amortization period is the amount of time it will take you to pay off your mortgage in full.

Extending your amortization to 25 or 30 years can greatly lower your payments. 

It gives short-term relief while rates are higher. 

This might not be an ideal long-term solution, as it increases your total interest paid and time in the mortgage. 

However, it immediately relieves you if you are financially spread thin.

The key is, you can adjust your amortization in the future if your financial situation improves or rates decrease. 

Even if your current lender won’t extend your amortization, other lenders may. 

So, it’s worth exploring.

Exploring different rates and terms can help you find a lower mortgage payment. 

For instance, a longer-term fixed rate might provide lower payments today compared to a shorter-term fixed or variable rate.

Currently, most borrowers prefer shorter-term fixed rates or variable rates.

They are hoping that rates improve, and they will be able to take advantage of them sooner.

But if the monthly payment is most important, then the longer fixed rate might be what gets you that relief.

You’ll want to balance your comfort for payment with your expectations for where rates might go.

Lower rates aren’t guaranteed, so you must choose the option that fits your needs best today.

You must weigh the right mix of payment amount, risk, and flexibility. 

This will help you find the best fit for your situation. 

Check all available options to ensure you are making a well-informed decision.

Don’t settle for the first renewal offer you receive. 

Pressure your existing lender by letting them know you are shopping around for the best deal. 

Once they present their best offer, contact a mortgage broker. 

See if the offer is competitive. 

Or, check if switching lenders could get you a lower payment. 

Comparing deals and negotiating can reveal better options, and help cut your payment.

A mortgage broker can provide valuable insights. 

They can help you understand options and adjust your mortgage to meet your needs.

Brokers have access to many products and lenders. 

They can help you find the best rates and terms that fit your needs. 

Also, a financial planner can help you consider other budget and financial changes. 

They ensure a holistic approach to managing your money. 

And might be able to help you identify other ways to help improve your monthly outflow of cash.

Expert advice can help you see things you may not have considered. 

It’s never too late to find the best solutions for your mortgage and finances.

Renewing a mortgage in a high-rate environment can be hard. 

But these strategies offer practical ways to manage and maybe reduce your payments.

For personalized advice tailored to your situation, feel free to reach out. 

I’m here to help you make the best financial choices—and I’m always happy to connect you with some of my great partners.