Lowering your mortgage payment can be a great way to free up funds. The way to get a lower rate is to refinance with a lower interest rate keep an eye on the market. Look for rates that are lower than your current interest rate. When mortgage rates drop, contact your lender to lock your rate. Get Rid of the FHA mortgage insurance premium determined how much equity you have, your equity will be based on what your home is worth when you refinance, simply subtract your current loan balance. Getting rid of private mortgage insurance you're probably paying for private mortgage insurance as part of your monthly payment. You can ask your lender to remove PMI this allows you to save money since mortgage interest is tax-deductible, but PMI is not. Extend the term of your mortgage if lower payment is your goal, extending the term of your mortgage with a loan modification can help you get there. A longer term spreads out the loan balance over more payments.