Reduce Your Monthly Mortgage Payments
By Increasing Your Down Payment

The size of your mortgage payment is determined by two factors - the interest rate and how much you borrow. There is little you can do to reduce interest rate. However, you can reduce your mortgage payment by having a larger down payment. Using an automatic savings plan is the easiest way to build your down payment.

Here is a chart showing the affect of having a larger down payment for a home costing $250,000 (assumes an interest rate of 6.5% and a 30 year amortization).

Cost of the home

Down payment

Mortgage Amount

Monthly payment





















Here is a calculator you can use to determine monthly payments for different size loans and different interest rates.

Monthly Mortgage Payment Calculator
Cost of the home $
Down payment saved so far $
Annual interest rate %
Mortgage amortization (in months)
Mortgage amount $
Monthly mortgage payment $

You may already have some savings, but establishing a disciplined savings habit can help you increase those savings, increase your down payment and reduce your monthly mortgage payment.

Saving is Easier with an Automatic Savings Plan
Decide how much you want to save and over what period. Then find out how much you need to put aside each month to have the larger down payment you want.

Save to increase your down payment
Amount you want to save $
Interest rate you expect to earn %
How many months to save
Monthly savings needed $

Interest is compounded monthly. This calculator is to be used for estimation purposes only. The financial institution is not responsible for its accuracy and the results are not guaranteed.

Start Your Automatic Savings Today
There is no easier way to save than with an automatic savings plan. If you are already using direct deposit for your paycheck, have Forest Bluff Financial Services transfer the amount each month. Here is an Automatic Transfer Authorization form to help you enroll. You can also have your employer deduct the amount each month and deposit into the account of your choice. Here is a Payroll Deduction Direct Deposit form.

If you are not already using direct deposit for your paycheck, here is a Payroll Direct Deposit form to help you get started. You can also call a service representative at 800/723-7237 or email for more information.


Take Control of Your Financial Future

Articles from our library about buying and owning a home.

Evaluating mortgage types

Tax implications of home ownership

Home equity loans

Consider refinancing regardless of rates

Buying your first home

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