How to Lower Your Monthly Mortgage Payment

Blog posted On September 29, 2022

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Interest rates have risen, but there are still ways you can make your mortgage payment lower. Here are five ways you can lower your monthly mortgage payment. 

Buy Points  

Discount points can help lower your interest rate upfront. “They’re actually prepaid interest,” says Holden Lewis, home and mortgage expert at Nerdwallet. “When you pay discount points, you’re handing the lender a chunk of interest payments up front in exchange for paying less interest every month.” It generally takes one discount point to decrease an interest rate by roughly 0.25%. 

Improve Credit  

Though each individual borrower's situation is different, most people can get a lower interest rate if they have a higher credit score. Looking for quick ways to boost your credit score? We can help! 

Explore Adjustable-Rate Options 

Oftentimes, adjustable-rate mortgages (ARMs) are offered at lower introductory rates than fixed-rate mortgages. The introductory period usually lasts for 3 to 10 years. After this, your mortgage rate will fluctuate with the market rates. For that reason, ARMs are often used by homeowners who don’t plan to live in the house for a long period. 

Mortgage Payment Buydown  

The Mortgage Payment Buydown gives home buyers a lower payment  on their mortgage for up to three years. After the buydown period is over, the mortgage payment will return to its initial level and continue the rest of the term. First, the home buyers decide how many years they want a lower mortgage payment  (1, 2, or 3) – this is the buydown period. Then, a cost of the prepaid interest is paid at closing. This bases the mortgage payment off of a rate that is up to 3% lower. The payment then raises based off a 1% higher interest rate each year during the buydown period. After the buydown period is over, the mortgage will return to its original level and continue as a fixed rate. 


A higher down payment can lead to lower monthly mortgage payments. With this easy-to-use online platform, home buyers can build a customized contribution campaign, raise down payment gifts, and accept contributions from anyone with a credit or debit card. Unlike traditional down payment gifting, HomeFundIt™ has no fees or offline paperwork. Every gift that you raise goes directly toward your down payment savings, and the contributions that you raise don’t expire, giving you plenty of time to find the perfect home. For first-time buyers, every gift earns a 2-to-1 match, up to the lesser of $2,000 or 1% of the purchase price*. Supporters can also shop from your campaign page at over 1,000 participating retailers to earn rebate pledges that average 7.5%**. 

There are still ways that we can help make home buying more affordable – even with high rates. Contact us to explore other options.  

*Grant is a $2-to-$1 match on regular down payment gifts received on HomeFundIt, up to the lesser of $2,000 or 1% of purchase price for first time buyers, as defined by Fannie Mae, who complete homebuyer education prior to signing a purchase contract. Talk to your loan officer or visit your HomeFundIt dashboard for next steps, or you can also find a housing counselor near you by visiting

Grant funds are applied to nonrecurring closing costs. If closing costs are fully paid by seller or interested party, grant funds can be used to buy down the rate. Grant funds cannot be used towards a down payment. Visit for complete terms and conditions.  

**The UpIt store, partner affiliates, and shopping pledges are a service provided by The Home Dream Foundation © (3). UpIt is available only to customers of HomeFundIt. For complete terms and conditions of HomeFundIt, please visit


Sources: MarketWatch