Unfortunately, it is not always possible to pay correctly all the installments of a loan. There’s an easy way to lower your monthly mortgage payment, just refinance your loan.
But, if you have bad credit, refinancing your mortgage may not be an option.
You can re-amortize your mortgage, so you can lower your monthly payment without refinancing. This process involves extending your mortgage term.
You can ask your mortgage company to re-calculate your escrow payment. If they find out your property taxes or homeowners insurance are less than what you’re putting into escrow each month, they will adjust your escrow payment which will lower your monthly payment.
The final option is a sort of co-housing way. This isn’t the ideal scenario for most people. But when things are really tight, you can rent out a room in your home.
Finally just note that there are tax benefits to retaining the mortgage on the property you let. The interest – but not any repayment of capital – can be deducted from your rental income as a business expense.
