Facing unaffordable mortgage payments can feel like you’re sinking in quicksand. It’s a stressful situation, and it can feel like there are no easy options. Before the panic sets in, remember that you’re not alone, and there are real steps you can take to regain control. With some adjustments and a clear plan, you can address this challenge and protect your home. 

It might be easier than you think. We have created a guide that will provide practical, manageable strategies to help you deal with mortgage payments that may seem unaffordable. No matter where you’re starting from, there are tools and approaches to help you keep moving forward. 

Review Your Budget 

Taking a closer look at your budget helps you understand exactly where your money is going and what changes need to happen. Write down every source of income you have and all your monthly expenses. Be honest and include everything from the big bills, like your mortgage and utilities, to smaller costs like coffee runs or streaming subscriptions. Spotting areas where you’re overspending or where you can cut back frees up extra cash to put toward your mortgage payment.

Contact Your Lender 

Reaching out to your mortgage lender early can make a huge difference. Lenders might be more flexible than you expect, especially if you’re upfront about your situation. Explain the challenges you’re facing and ask if they offer any assistance programs.

Options like loan forbearance or loan modifications might be available. A forbearance temporarily pauses or lowers your payments, giving you room to catch up later. Loan modifications, on the other hand, could lower your interest rate or extend the term of your loan to make monthly payments more manageable. 

The key is to call before you miss payments. Falling too far behind could limit the kind of help your lender is willing or able to offer. 

Prioritize Essentials

Focusing on the most critical expenses ensures your priorities stay in order during tough financial times. Essentials like housing, utilities, groceries, and transportation are your top priorities. Debt payments and other bills should come after these core necessities. 

Try asking yourself this question when looking at your budget: “Does this expense help me keep a roof over my head or food on the table?” Anything that doesn’t fall into those categories might need to wait or get cut back. Shuffling may mean downgrading in certain areas temporarily.

Explore Assistance Programs

Homeowner assistance programs are available to provide support when mortgage payments become unmanageable. Programs vary depending on where you live, but local, state, and federal options are worth exploring. 

The U.S. Department of Housing and Urban Development (HUD) offers counseling services to help homeowners understand their options. HUD-approved housing counselors can guide you through tricky situations, offering advice tailored to your needs. 

Some areas also offer mortgage assistance funds to help cover missed payments or avoid foreclosure. Check with your local government or nonprofit organizations focused on housing to see what’s available. 

Earn Additional Income

Boosting your income, even temporarily, lightens the weight of a heavy mortgage. Side jobs like driving for food delivery apps, babysitting, or freelancing offer flexibility while giving you extra funds for your monthly payments. 

Selling unwanted items online can also provide fast cash. Gather old electronics, clothes, or furniture that you no longer need and list them for sale on platforms like eBay or Facebook Marketplace. Clothes do especially well on apps like Poshmark or Mercari.

Picking up extra shifts or part-time work might not be easy, but over time, these efforts ease financial pressure. Every dollar counts, especially when you’re focused on keeping your home. 

Consider Refinancing 

Refinancing your mortgage might lower your monthly payments, making them easier to manage. By replacing your current mortgage with a new one at a lower interest rate or longer repayment term, your overall costs become more affordable. 

Before moving forward, weigh the pros and cons. Refinancing often comes with closing costs or fees that could outweigh the savings, so it’s important to do the math. You should consider speaking with a trusted financial advisor to make sure it’s the right choice for you. 

Refinancing works best if your credit score has improved since you first got your mortgage or if interest rates have dropped significantly.  

Rent Out Space 

Renting a spare bedroom or part of your property can bring in some much-needed income. Turning unused space into a short-term rental through platforms like Airbnb or finding a long-term tenant helps offset your mortgage costs. 

Getting everything in writing keeps the arrangement clear and protects both you and the renter. Be sure to check local laws or HOA rules to make sure renting is allowed in your area.

Taking on a roommate might feel like an adjustment, but the extra income could make all the difference in staying in your home. 

Sell and Downsize 

Selling your home and moving into something more affordable might be the hardest decision to make, but it’s also a practical solution in some cases. Downsizing is simply creating a financial reset so you can move forward with less stress. 

Moving into a smaller apartment or home reduces costs and might even give you leftover equity after the sale to rebuild your financial foundation. 

This option can be a great choice if your current mortgage payment takes up more than 30% of your income. Adjusting your living situation to match your budget helps you gain stability and save for the future. 

Avoid Using Credit Cards to Cover Payments 

Putting mortgage payments on a credit card can be tempting in a pinch, but it’s usually not a wise move. High-interest rates on credit cards create more debt and fewer options for digging yourself out later. 

Stick to the other options listed above to manage payments. Saving your credit card for true emergencies prevents a growing pile of debt that becomes harder to repay over time. 

Talk to a Professional

Getting advice from a housing or financial expert can clarify your options and improve your situation. A housing counselor approved by HUD provides free or low-cost resources to create a plan for tackling unaffordable mortgage payments. 

Financial planners can also help you create a budget that’s realistic for your unique income and expenses. Having a clear plan from a trusted source takes away guesswork and gives you a sense of control over your finances.