With mortgage interest rates dropping, homeowners are looking to save money. One way is through mortgage rate modifications, which can lower monthly payments without a full refinance. The average 30-year fixed mortgage rate is 6.21%, down from 6.74% last year. Homeowners can save $600-$1200 annually by researching rates and negotiating with lenders.

Mortgage rate modifications adjust the interest rate of a current loan, reducing monthly payments and interest costs. Lenders may offer modifications to retain good customers when market rates drop. Before approaching your lender, understand your loan terms and research current rates. Negotiate terms with your lender, demonstrating good credit and on-time payments for better chances of success.

While refinancing can be costly and time-consuming, a rate modification is usually faster, cheaper, and involves less paperwork. Homeowners locked into higher rates can benefit significantly from a lower rate without the typical refinancing hassles. Ensure any potential savings from a modification outweigh any associated fees.

Shopping around for a mortgage can save an average of $76,410 over the lifetime of a 30-year fixed-rate loan. Before deciding between a modification or refinancing, understand all your options and consult a financial advisor. Negotiate with your lender for a lower rate, demonstrating good credit and consistent payments to increase your chances of success.

Read more at Yahoo Finance: This under-the-radar mortgage hack is saving some Americans thousands of dollars per year. Here’s what you need to know