More Than Two Choices There are three ways to reduce your monthly payments. If you wait a few months, your down payment will be that much greater. One way to reduce your interest rate is to pay points. The more points you pay, the lower your interest rate is. Be sure to shop around.
Different lenders offer different rates and different programs.
You may qualify for a first time home buyers program that could reduce your interest rate further. You could consider a 20 or 25 year loan instead of a 15 year loan. Your options are not limited to 15 and 30 years. You could also consider a variable rate mortgage. With this type, the interest rate is not set over the life of the loan, but varies after a certain fixed period.