Quick answer: If today’s rates have you hesitating, there are three ways to lower your monthly mortgage payment — usually funded by a seller concession. Cutting the purchase price barely moves the payment (about $66/mo per $10,000). Using that same money for a permanent rate buydown (discount points) or a temporary buydown gives you far more savings per dollar. With a VA loan, sellers can cover these costs — and since rents are as high as mortgages right now, buying often still wins.
Charlie Cameron with The Military Home Team at eXp Realty, here with lender partner Albert Sousa of Mortgage Apex. With rates higher than they were, a lot of buyers are waiting — but there are real tools to bring your payment down today. Here are the three we use most, with a simple example.
3 ways to lower your mortgage payment
Picture a $500,000 home on a VA loan with a $10,000 seller concession to work with. Here’s how the three approaches compare (rate figures are illustrative — your numbers will vary):
| Method | How it works | Best for |
|---|---|---|
| Price reduction | Lower the purchase price (and loan amount) | Small monthly impact — a $10k cut saved only about $66/mo in our example |
| Permanent rate buydown (discount points) | Use a seller concession to buy the interest rate down for the life of the loan | Bigger long-term monthly savings if you’ll keep the loan a while |
| Temporary rate buydown | Use a concession to drop the rate for the first 1–2 years (e.g. a 2-1 buydown) | Lower payments early, especially if you expect to refinance when rates fall |
1. Reduce the purchase price
The most common ask — but the least efficient. Knocking $10,000 off a $500,000 price saved only about $66 per month in our example. That same $10,000 can do a lot more for your payment if you use it differently.
2. Permanent rate buydown (discount points)
Instead of cutting the price, have the seller’s concession buy down your interest rate for the life of the loan. Dollar for dollar this usually beats a price reduction on monthly savings, and it keeps saving you money the whole time you hold the loan.
3. Temporary rate buydown
A temporary buydown (like a 2-1 buydown) uses the concession to drop your rate significantly for the first year or two, then it steps up to the note rate. It’s a great fit if you want lower payments early or expect to refinance if rates come down.
Why buy now instead of waiting?
In a slower market, sellers are offering bigger concessions — which is exactly what funds these buydowns. Meanwhile rents in the Panhandle are as high as (or higher than) a mortgage, without the equity, tax benefits, or the $0-down VA advantage. You’re not locked in either: buy now with a buydown, and refinance later if rates improve. New to the VA loan? Start with Top 10 Things to Know About the VA Loan.
Frequently asked questions about lowering your mortgage payment
What is the best way to use a seller concession to lower my payment?
Usually a rate buydown (permanent or temporary) beats a price reduction. A $10,000 price cut saved only about $66/mo in our example, while the same money put toward the rate saves considerably more.
Can a seller pay for a rate buydown on a VA loan?
Yes. VA loans allow seller concessions, which can be applied to a permanent or temporary rate buydown or your closing costs.
Should I wait for rates to drop before buying?
Often not. Rents are as high as mortgages right now, sellers are offering concessions, and you can refinance later if rates fall. Run your numbers with a lender — see our base housing guides to start.