A down payment will lower the amount you borrow which, in turn, can lower your monthly payments. For example, if you make a 20 percent down payment on a $200,000 loan, you’re borrowing only $160,000. That will result in lower payments spread over 30 years than if you were paying off a larger loan amount over the same time period. Other factors such as your repayment terms and interest rate also affect your monthly mortgage payments.