How To Deal With An Expensive Mortgage

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Aug 2, 2022

Your home must be your refuge. It should be a safe place to unwind after a tiring day at work. But if you’re dealing with an expensive mortgage, you may not be able to relax as you struggle to meet your monthly payments.

Feeling worried or panicking every time you have to pay your mortgage and other expenses isn’t an excellent way to live. Fortunately, there are ways to deal with a costly mortgage, and these include the following:

  1. Ask For Professional Help

If you’re confused about your options when paying an expensive mortgage, don’t hesitate to ask for professional help. Loan experts like Security America Mortgage and similar providers can give a hands-on and personalized approach to helping you access the best possible mortgage deal. It is especially true if you’re a veteran or a service member. So, instead of fretting about your monthly payments, obtain the help of loan experts.

2. Consider Interest-Only Deal

If you want to avoid expensive mortgage payments, consider an interest-only deal, which provides a more affordable monthly payment. It’s also ideal for those who have good credit and ample assets.

Generally, an interest-only deal works by requiring homeowners to pay the interest and not the principal amount of borrowed money. However, once your loan term ends, you need to repay it by refinancing, selling your property, or using your savings to keep your property. Often structured as an adjustable-rate mortgage, an interest-only deal has terms that last up to 10 years.

3.  Modify Your Loan

If you’re dealing with financial hardship, you might want to consult your mortgage lender to modify your loan. Other crises, such as job loss, can be a reason for lenders to restructure your loan to ensure your monthly mortgage payments are more affordable.

While you don’t have to be in default to make it work, it’s frequently not guaranteed and a risky game. You might also want to take preventative measures by modifying your loan ahead of time if you know you’ll lose a high income in the future. Moreover, you might need to opt to work and try with your lender instead of defaulting and dealing with the entire loan modification process.

4.  Overpay Your Payments Whenever Possible

You can successfully deal with an expensive mortgage if you make overpayments whenever possible. For example, if interest rates are low this month, it would be best to pay more than your monthly payment. By paying more of your mortgage, you’ll be in a great position once interest rates increase and your costly monthly payments start to hurt.

However, before you consider overpayments, talk to your lender first to know whether or not there are penalties for overpaying. Ensure there aren’t other expensive credit cards or loans that require dealing with first. Furthermore, if you have a rainy day fund for any issues, you may start using it to pay off your monthly mortgage.

5.  Extend Your Loan Term

Extending your loan term can help you pay off your mortgage. For example, if you’ve been paying a 30-year mortgage for a decade or more, refinancing your existing balance into another 30-year loan term can help cut your payments. If the rates are lower, your payments will also become more affordable.

Unfortunately, the downside with extending your loan term is that you have to add more years to your repayment period. But if you think you can’t afford the payments of your 20 or 15-year mortgage, extending your loan term and making it a 30-year term will help you enjoy more savings every month, even if your interest rates increase.

6.  Look For Cheaper Homeowner’s Insurance

If your homeowner’s insurance policy is part of your monthly mortgage payment, consider looking for cheaper options to lessen your mortgage costs. To do this, ask around or shop online. While there are countless options you can choose from, choose an insurance provider that will offer you affordable homeowner’s insurance without any hidden charges.

7.  Put Your Property To Work For You

If your house has extra space, you can rent it out. This approach can make a difference when paying an expensive mortgage, maintenance, insurance costs, and tax. However, this solution may only work if you choose a reliable tenant.

Aside from allowing other people to rent your extra space, you may also designate it as your home office. You may deduct this space on your income tax return once it’s used exclusively for your business.  


If you’re a homeowner and your mortgage payments are too expensive, there’s no need to panic. When your mortgage-payment struggles are a burden, keep the above strategies in mind to cut your monthly payments. Once done correctly, you can deal with your costly mortgage successfully. Just make sure to weigh the pros and cons of every available option for you to make a well-informed decision.

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