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  • Writer's pictureRebecca Richardson - Mortgage Consultant

Follow these tips to lower your closing costs and mortgage payments

We are all looking to keep our costs as low as possible when buying a home. Luckily for you, I’ve got four ways to keep closing costs cheaper and lower your monthly mortgage payment.

Lower Closing Costs

There are two ways you can lower your closing costs, which in turn, helps you keep costs down to get you in your dream home.

👉🏻 Many lenders may offer a higher-than-usual interest rate and in exchange would then pay some or all of your closing costs.

👉🏻 You also could negotiate to have the seller pay your closing costs, which may mean you agree to pay a higher sales price but in turn wouldn’t have as much out of pocket to close.

Pay PMI all at once

If you have less than a 20% down payment, the mortgage lender may charge private mortgage insurance (PMI). This cost can be hundreds of dollars per month and paid as part of your monthly mortgage payment. But, if you pay PMI in one lump sum, that cost then would not be in your mortgage, thus holding down that monthly payment.

Shop your homeowner’s insurance

Like PMI, your homeowner’s insurance premium can be paid from your escrow account – an account set aside to pay for things like insurance and taxes. One way to keep this cost down is to shop around for homeowner’s insurance. You can check if your current auto insurance provider gives discounts for having multiple policies. Or, you can pay your homeowner’s insurance directly and not from escrow, which also will keep your monthly mortgage payment lower.

Pay points for a lower rate

Finally, you could pay points, which is an upfront cost that allows you to basically pay your way to a lower interest rate. But how do you know if paying points makes sense?

To determine if it could be worth it to you financially, take the amount of the extra fees and divide it by the monthly savings to get the number of months you will need to keep the loan to benefit from the buy down. Paying $2,500 for points to lower your mortgage payment by $100 per month? That pays for itself if you plan to sell after a couple of years.

The best strategy for buying a 🏠 and keep costs down is personal to your budget and goals. Reach out to me with any questions and be sure to follow me for more homebuying tips.

Schedule a free consultation by emailing my team at (

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