As a general rule of thumb, the longer the new mortgage loan term is, the lower the required monthly payments. If traditional mortgage loan terms are not long enough to lower the monthly payments to a desired amount, one can now considered the relatively new 40-year amortization mortgage.

If you are currently paying private mortgage insurance (PMI), you should consider talking to a mortgage professional to see if there is anything they can do to eliminate the PMI. This could save you a substantial amount of money in the long run.

Pay Option ARM's and Interest Only loans are a great way to significantly reduce your monthly mortgage payment. Consult a mortgage expert to see if either of these options are right for you and you qualify for either of them.

If reducing your monthly mortgage payment is not possible then you should look into reducing your total monthly payments. By consolidating high interest and high payment debt into their mortgage, many homeowners are able to reduce the overall amount that they make in monthly payments even if their mortgage payment goes up. This can go a long way toward making their monthly finances must more managable.

If you are experiencing temporary financial troubles, you can refinance from a longer-term mortgage to a shorter term interest only or option arm mortgage.

If you have paid off a large portion of your original loan amount, and your loan is a fully amortized loan. You can reduce your monthly mortgage payment by refinancing, even if you do not get a lower interest rate.

You can also refinance into a pay option ARM program. This will allow you to have the lowest possible monthly payment and will also give you financial flexibility you are looking for.

If you are currently paying PMI and have owned your home for a few years and home values in your area have increased fairly substantially, you can contact your lender and request that the PMI be removed. Your current loan must be equal to or less than 80% of your homes market value. If you are unsure if your home has increased in value enough, contact a local real estate agent and ask them to do a market analysis and give you a ballpark figure.

Not all lenders will allow this but if yours does, they will request documentation in the form of a current appraisal for which you would pay for. The appraisal cost is typically $300-$500, and is well worth it, if it means saving you a couple hundred dollars a month in PMI payments.

If you currently have two mortgages, you may want to consider refinancing. The interest rate on the second mortgage is usually significantly higher or an adjustable rate tied to PRIME. Refinancing that higher interest rate second mortgage or adjustable second mortgage can save you on your monthly mortgage payments.