- 1). Larger down payment. When you are borrowing less from the bank, you will always pay less in principle and interest. This is especially important for home mortgage payment because home loans are usually either 15, 20, or 30 years. A five percent interest might not sound like much, but over a long time it can really add up. Because of the collapse of the housing market, many banks are more cautious about borrowers. It is to your benefit that you pay at least twenty percent down payment.
- 2). Buy points. The higher the points, the lower the interest rate. Points are one time purchases that you can buy from the bank. The points are bought in the form of closing costs. These closing costs are one time only fee that you only have to pay once when the loan finalizes. It is very beneficial to buy more points to get the lowest interest rate possible. A lower interest rate will effectively lower the monthly home mortgage payment.
- 3). Another important part that affects you home mortgage payment is the taxes that you have to pay. These taxes payments are determined by the price of the property that you bought. However, the percentage differs for each city. Some of the newer cities will charge very high property taxes because the city is still developing and needs lots of money to pay for all the new developments (schools, roads, public facilities and etc). The new residents that live there will have to help to pay for these. Choose where you want to live carefully to avoid unnecessary costs to mortgage. Older and more established cities will have lower property taxes.