Our mortgage payment calculator can be the first step is understanding where you might be able to lower your costs each month. There are a few proven ways of making sure you pay less every month: Don’t pay for PMI: a down payment of at least 20% will mean not having to pay for private mortgage insurance each month. This is especially important to consider if you are thinking about an FHA loan, where you could be paying mortgage insurance for the entire life of the loan regardless of how large your down payment is. Purchase less house: while it may seem obvious to many, a smaller home loan means a lower purchase price and smaller monthly mortgage payment. Take out a loan with a longer lifespan: with a longer loan term, your monthly payments will be lower; however, you’ll end up paying more in interest over the additional years. Find a lower interest rate: Not only can putting down more than 20% eliminate the need to pay mortgage insurance, but you’ll also end up with a lower interest rate as well.