Jun 8, 2023
Are you looking to buy your first home but feeling overwhelmed by the cost? Don't worry, there are ways to lower your monthly payment and make homeownership more affordable. In this blog post, we'll share 5 tips for getting a lower monthly payment on your first home. From looking for a cheaper home to considering a government-backed loan, these strategies can help make your dream of owning a home a reality. So if you're ready to take the first step towards homeownership, read on for some useful tips. Also, if you haven't heard about Steadworth, check out our How It Works to see how we can help you get into your dream home!
Look for a cheaper home
One of the most obvious ways to lower your monthly payment is to simply look for a cheaper home. This may mean compromising on certain features or amenities, but it can significantly reduce the amount you need to borrow and the amount you have to pay each month.
Consider a longer mortgage term
Another option is to consider a longer mortgage term. While this will ultimately result in paying more in interest over the life of the loan, it can lower your monthly payment by spreading the cost out over a longer period of time.
Put down a larger down payment
Making a larger down payment can also help lower your monthly payment. When you put more money down upfront, you borrow less, which means you have to pay less each month.
Shop around for mortgage rates
It's important to shop around and compare mortgage rates from multiple lenders. Different lenders may offer different rates, and even a small difference in rate can make a big difference in your monthly payment.
Consider a government-backed loan
Government-backed loans, such as FHA loans or VA loans, can offer lower down payment requirements and more flexible credit score requirements, making them a good option for first-time home buyers. These loans may also come with lower mortgage rates, which can help lower your monthly payment.
It's important to consider all of these options and weigh the pros and cons before making a decision. It's also a good idea to speak with a financial advisor or mortgage broker to get personalized advice on the best way to lower your monthly payment.