You may want to consider a mortgage rate modification if current mortgage rates are lower than what you pay now. Your payment may be considerably lower, you'll pay less interest, and you'll pay more off your principal each month. Another option is to consider choosing a shorter term. Your payment may or may not decrease, but you could possibly reduce years of payments -- saving that amount in interest payments would most likely be significant, plus paying off your mortgage much sooner could be a relief. The mortgage rate modification is also very quick and easy to complete.

The cost of a mortgage rate modification is $1,000 or 1% of the outstanding principal balance. For example, if you owe $75,000, the cost would be $750. If you owe more than $100,000, you would not pay more than $1,000 for a mortgage rate modification. Likewise, if you were modifying a $200,000 mortgage, the fee would only be $1,000.

No, though you can opt for a shorter term. For example, you have a 30-year mortgage and have paid for 7 years. You could continue with the original 30-year term, with a lower rate for the next 23 years. Or, you can choose to decrease your term to a 10-, 15-, or 20-year mortgage at the lower rate.