Own 1 Single Family, how to lower monthly payments to lender?

6 Replies

Hi, 

I became the owner of my family's property, and got a loan as an investor, now I'm wondering how I can lower the monthly payment on the loan by a few hundred $ per month.

Some tenants struggle to pay rent on time and have gone MIA for weeks at a time, making me fill up the gaps. 

The several hundred $ I've had to cover concerns me long-term, so what would be the best way to lower the monthly payment, given that the current loan is valued at $300,000, and the equity in the property is $150,000? My current credit isn't great due to some unforeseen medical expenses, and my salaried income is $60,000 per year.

Thanks to all ahead of time!

How long have you had the loan in your name? What was the amount on the original loan? What are your current payments?

Sounds like you should evict those tenants.
Originally posted by @Chris Ellis :

How long have you had the loan in your name? What was the amount on the original loan? What are your current payments?

 its only been a few months, less than a year. Ill admit I was naive enough to accept a loan with really bad terms to pull some equity out, since the original loan was for 285K. Current payments come up to 2265 after all costs included. 

Most recent info I've gathered has me looking at a 30yr fixed refinancing without pulling out additional equity, which drops payment to 1650. The saved $600 should help ameliorate for the tenant situation, at least while I find new ones to replace the problem tenants I have now. Thoughts? 

Originally posted by @Peter Smith :
Sounds like you should evict those tenants.

 Lol believe me, I'm working on it

You could prepay the insurance and taxes instead of doing escrow if you're not already. However, those costs are still there and you're not getting rid of them, but it would reduce the monthly payment. 

Assuming you can float the upfront cost.

The only other way is to reduce your interest rate, but rates have gone up recently so I doubt you'll be able to lower them that much currently.

Is a few months more than 6? Refinancing to better terms is certainly ideal. This alleviates some of the potential risk you face with the tenants not paying on time. 

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