11 Ways to Lower Your Mortgage Payment
Your payment is principal, interest, taxes, insurance and maybe mortgage insurance. Every piece can move.
The monthly payment is what most buyers really shop on. Some of these levers work before you buy, some after — and a few are specific to Georgia.
1. Assume the seller's loan
Some FHA, VA and USDA loans can be assumed, keeping the seller's original rate. You will need to cover the difference between price and loan balance. Browse homes with assumable loans and read assumable mortgages explained.
The trade-off is cash: the gap between the price and the remaining balance usually has to be covered by a down payment or a second loan. The lender servicing the original loan has to approve you, and VA assumptions have entitlement rules worth understanding before you offer.
2. Ask the seller or builder for a rate buydown
A seller credit can buy down your rate permanently or temporarily. Builders often offer this on new homes. See mortgage points and buydowns.
A temporary buydown lowers the payment in the first years only, so make sure you can afford the full payment when it ends. A permanent buydown costs more upfront but lowers the rate for the life of the loan. Your lender can show both side by side.
3. Buy discount points
Paying points at closing lowers the rate for the life of the loan. Work out how many months it takes to break even.
Divide the cost of the points by the monthly saving to find your break-even month. If you expect to sell or refinance before then, points may not be worth it.
4. Compare lenders
Rates and fees vary between lenders on the same day. Compare quotes before you lock.
Ask each lender for a Loan Estimate on the same day for the same loan, with the same points, so the comparison is fair. Section A shows each lender's own fees.
5. Put more down
A larger down payment lowers the loan amount and can reduce or remove mortgage insurance.
Weigh this against keeping cash for emergencies and repairs. A slightly larger payment can be better than an empty savings account in your first year of ownership.
6. Remove PMI as soon as you can
On a conventional loan, you can ask to cancel PMI when you reach 80% of the original value, and it ends automatically at 78% under federal law. See PMI explained.
Paying extra principal, or a rise in your home's value confirmed by an appraisal, may let you reach the threshold sooner, depending on the lender's rules. FHA mortgage insurance works differently and often lasts longer; refinancing may be the only way to remove it.
7. File your homestead exemption
If your taxes are escrowed, a lower tax bill eventually lowers your payment. Apply with the county tax assessor by April 1 in most counties.
Your servicer reviews escrow once a year, so the lower tax bill shows up in your payment after that review. The exemption itself must be filed by you — it is not automatic, and it does not carry over from the seller.
8. Appeal a high property tax assessment
If the county's value is too high, you generally have 45 days from the assessment notice to appeal.
Look at recent sales of similar homes nearby, and compare them with the county's assessed value. If you bought recently, your own purchase price is strong evidence of value.
9. Shop your homeowners insurance
Get quotes from several insurers and consider your deductible. Insurance is part of your escrow payment.
Ask about discounts for a newer roof, security systems, and bundling with auto insurance. Review your coverage each year rather than letting it renew automatically.
10. Improve your credit before you apply
Better credit can mean a better rate. See things to do before applying for a mortgage.
Paying down card balances and correcting report errors are the fastest levers. Even a modest improvement can move you into a better pricing tier with some lenders.
11. Refinance if rates fall
If rates drop meaningfully after you buy, a refinance can lower the payment. Weigh closing costs against monthly savings.
Include closing costs, the intangible recording tax on the new loan, and how long you plan to stay. If the break-even point is years away, a refinance may not pay off.
Know what is in your payment
Your payment typically includes principal and interest, property taxes and homeowners insurance held in escrow, and mortgage insurance if you put less than 20% down on a conventional loan or use an FHA loan. HOA dues are usually paid separately.
Common questions
Can I lower my mortgage payment without refinancing?
Yes — removing PMI, appealing your property taxes, filing for homestead and shopping your insurance can all lower an escrowed payment.
What is a 2-1 buydown?
A temporary buydown that lowers the rate for the first two years, usually paid for by the seller or builder.
Can any loan be assumed?
Most conventional loans cannot. FHA, VA and USDA loans can usually be assumed with lender approval.
Does a longer loan term lower the payment?
Yes, but you pay more interest over time. Compare the total cost, not just the monthly figure.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.