There are several ways to reduce the mortgage payments and keep cash in your pocket. Normally, you would need to refinance debt that the rate is lower. However, this process is expensive and some do not have the money. In some cases, lenders may be willing to reduce the amount of debt without refinancing.

  1. Learn how you can reduce mortgage payments without refinancing the debt. (Image: Housing, Mortgage, Foreclosure Real Estate concept or image by Kathy Burns-Milliard from
  2. Document your financial difficulties. In order to reduce mortgage payments without having to refinance the debt, the lender can restructure the loan. However, not everyone qualifies for this benefit. Before the application is approved, the entities will review your financial situation and determine whether or not you qualify for help. Some legitimate reasons include loss of employment, illness, injury or disability. You must keep copies of the accounting records, including pay stubs, bank statements, bills, unemployment compensation.
  3. It acts immediately. Instead of waiting for the situation you out of your hands, you should contact the mortgage company as soon as you detect signs of potential problems. The reduction process payments without refinancing is long and can take weeks to get approval and finalize the paperwork.
  4. Requests a loan modification. One type of restructuring is the mortgage modification, whereby the lender agrees to reduce the interest rate or extend the loan term to reduce the amount of payments. The entity may suggest this alternative. If you do not, you can request it.
  5. It presents a proposal. You can ask the bank to convert the interest or adjustable rate into a fixed, or you can request a loan extension fee. In some cases, an entity may temporarily suspend payments for a specific period of time.
    Negotiate with the lender; some may not accept the proposal. Organized a meeting to discuss possible options.

Tips & Warnings

  • If you meet certain conditions, owe more money than the value of the property or have a debt exceeding 31% of your monthly gross income, you may qualify for a loan modification in accordance with the program of the federal government of the United States America Making Home Affordable.