Marriage is a true union. It's a union of body, mind and soul. Oh yeah, and don't forget about the union of finances. This is one aspect of marriage that few couples seem to remember. All of the debt on one side of the union is automatically adopted by the other. If you're getting married soon, and one of you own a home that the two of you will be living in, then now is the perfect time to consider reducing your mortgage. Not sure how to do it? Read on for a few tips.

Reducing Your Mortgage - Refinance

If you bought your home during the huge housing boom of the 90s then you may have purchased your home at a much higher interest rate than what's currently available. You can refinance your mortgage loan now and quite possibly save a couple of hundred dollars per month. If your soon-to-be spouse has excellent credit, then you may want to wait until after the marriage so you can get the best rate possible by applying for the refinance together.

Reducing Your Mortgage - Remove the PMI

At the time when you took out your mortgage, odds are that the mortgage company applied a monthly charge in your mortgage called Private Mortgage Insurance (PMI). This is typically applied if your had less than 20 percent equity in your home at the time of purchase. If you have lived in your home for a number of years, you may be eligible to have it removed. If you currently have more than 20 percent equity in your home, you could save thousands of dollars per year by having the PMI removed from your mortgage.

Reducing Your Mortgage - Refinance to an Adjustable Rate

While the short term benefits may be worthwhile, there are risks involved with adjustable rate mortgages. However, in fairness, they should be considered as a cost-saving option. Because adjustable rates are based on the national interest rate, you could enjoy a much lower rate than your current fixed-rate loan. Before you opt for this option, you should do your own research into adjustable rate mortgages to see if the benefits outweigh the risks for your situation.

How to Get a Low Mortgage Payment from the Get-Go

If you are getting married and the two of you are looking to purchase a first home together, then there are a few options you can look at to help you get the lowest mortgage payment. The first is to put at least 20 percent down on your home. This will allow you to eliminate the PMI from being added on in the first place.

Another option is to look into an 80/10/10 mortgage. With this mortgage, you place 10 percent down and you finance 80 percent of the remaining price. The last 10 percent gets financed into a second mortgage or as a home equity loan. With this scenario, you again get to avoid the PMI charges and you can manage a lesser overall mortgage payment.

With the current state of the real estate market, mortgage lenders are constantly trying to come up with attractive financing options designed to help the home buyer make their decision. Be sure to ask your mortgage broker to explain all of the money-saving options that are currently available to you. Then, make your decision when you're ready. At the end of the day, you'll have the house you want at a mortgage you can afford.