Homebuyers: 8 Proven Ways to Lower Your Monthly Mortgage Cost:
By Cyrus Bonnet -Veterans Agents
Especially Useful for Veterans and VA Loan Buyers
With rising home prices, high interest rates, inflation, and tariffs all putting pressure on affordability, many Americans—especially first-time and veteran homebuyers using VA loans—are seeking ways to reduce their monthly mortgage payments.
This blog is part of a broader series offering actionable strategies for all buyers, with special guidance for military and VA-eligible borrowers. Whether you’re a veteran, active-duty service member, or civilian, these tips can help you make homeownership more affordable in today’s market.
Below is a summary of 8 powerful strategies to lower your mortgage payment. Each is expanded in its own post, available through the links in this series.
1. The Basics: Down Payment, Credit Score & Loan Terms
Start with the fundamentals:
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Larger down payments reduce your loan balance and monthly cost.
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Stronger credit scores lead to better interest rates.
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Longer loan terms — like 30- or even 40-year options — lower your monthly payment (though increase lifetime interest).
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VA loans offer the lowest average interest rates across all loan types, making them ideal for eligible military buyers.
🔹 Even if VA loans don’t require a down payment, adding one can reduce your monthly expense further.
2. Shop Multiple Lenders to find the best Rate and Fees
Shopping around can save you thousands:
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You have a 13-day window to apply with multiple lenders, and it only counts as one hard credit inquiry.
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Compare interest rates, lender fees, closing costs, and turnaround times.
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Often we find mortgage brokers have better rate and fees as they skip the corporate overhead. However some lenders offer very good incentives
🔹 Caution for military buyers: Many large national ‘VA lenders’ advertise as military-friendly but often charge excessive fees. They rely on brand recognition, not value.
🔹 We’ve already vetted a network of trusted VA lenders that deliver real savings here at JBLM
See Our Top VA Brokers in our VA Center:
3. Assumption Loans: Take Over a Lower Rate (with Caution)
VA and FHA loans may be assumable, meaning you can take over a seller’s existing low-interest mortgage.
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Potential for massive monthly savings (e.g., 2.25% vs 6.5% market rate)
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No need to requalify for a new loan rate
But there are some hurdles and considerations:
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You may need to pay the seller’s equity out-of-pocket
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Not all lenders allow assumptions easily
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Timeline and qualification vary by case
🔹 We cover the full list of pros and cons in our assumption loan guide.
Visit our blog about assumption details Here:
Or watch this video.
4. Rate Buydowns & Discount Points
Lenders often allow you to pay upfront to lower your interest rate (“buying points”) or use temporary buydowns (like a 2-1 or 3-2-1).
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2-1 Buydown: Year 1 is 2% lower then todays rate, Year 2 is 1% lower, then standard rate.
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3-2-1 Buydown: Starts even lower for more relief upfront. 3% lower year 3, 2% year 2, 1% year 1.
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Discount points reduce the rate for the life of the loan. But they come at a costs. Weather it is you or the seller paying for it. See negotiations below.
🔹 The key is to negotiate for the seller to cover the cost during the deal. 🔹 Yes, VA buyers can use buydowns! Ensure your lender structures it properly.
5. Timing the Market: Seasonality & Market conditions
Timing your purchase can mean better pricing, better inventory, and better rates:
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A rule of thumb is Buy Summer Sell Spring. Summer often provides the most inventory. Though you still need to work with a pro to determine what each year is doing to pin point the peaks.
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Winter (Nov-Jan) has Fewer buyers = more seller concessions, but less inventory.
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Certain markets are more buyer-friendly during PCS seasons
🔹 Use our app or contact us to analyze seasonal trends in your target area.
6. Hire Real Expert Negotiators
Negotiation is an art—and our team is trained to reduce your mortgage costs before you ever talk to a lender:
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80% of realtors in 2024 nationally did not sell a single home
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Make sure your real estate broker or team has years experaince, positive reviews, consistent sells, continued education, active in market data, and is resourceful.
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Negotiate seller-paid rate buydowns and closing costs
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Identify property leverage points (days on market, price history, seller motivation, etc.)
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Strategically time and structure your offer
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Avoid common mistakes buyers make in fast-moving markets
🔹 Veterans Agents has helped clients lower monthly costs by $500-$1,200/month through smart negotiation alone.
7. Buy Now, Refinance Later
Don’t let high rates stop you from buying a home now:
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Buying now might mean less buyer competition and more favorable terms.
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VA IRRRL (Interest Rate Reduction Refinance Loan) makes future refinancing easy for VA borrowers
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You can lock in your home now and reduce your payment later
🔹 Waiting may cost you more in rent and rising home prices, future bidding wars.
8. Stay Informed and Educated.
Knowledge is leverage. Stay on top of changing rates, policy updates, and opportunities by connecting with us and with the Ultimate VA App: Download Here
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Real-time interest rate tracking
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VA loan calculators and affordability tools
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Market condition alerts
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Budgeting and PCS support features
🔹 Built by Veterans Agents, tailored for VA and military buyers, but packed with tools every buyer can use.
Final Thoughts
Whether you’re using a VA loan or a conventional mortgage, your strategy can make or break your affordability. Our team is ready to guide you, negotiate for you, and connect you with lenders who won’t waste your time or money.
Let’s make your mortgage manageable. Reach out today.
Cyrus Bonnet | CEO, Broker, Veteran
Est: 2011
Cyrus@veteransagents.com
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