 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Lowering Your Monthly Mortgage Payment When You Buy\n---------------------------------------------------\nIf you're looking to nab a lower monthly mortgage payment when buying a home, focus on the ways you can decrease how much you borrow, how much interest you'll pay or the amount you're charged for the other expenses that make up your monthly mortgage payments.\n*   **Improve your credit.** While you can qualify for some types of mortgages with a credit score in the high 500s to mid 600s, a higher score can help you get a lower interest rate. If you don't need to buy a home right away, improving your credit first could be a wise idea.\n*   **Save for a bigger down payment.** The larger your down payment, the less money you'll have to borrow and repay. A larger down payment can also help you qualify for a lower interest rate. And, if you put 20% or more down, you can avoid paying for private mortgage insurance (PMI) with a conventional loan, which further reduces your monthly mortgage payment.\n*   **Look for no or lender-paid PMI options.** Even if you can't afford a 20% down payment, there are mortgage options without mortgage insurance. A VA loan through the Department of Veterans Affairs could work, if you qualify. Private mortgage lenders may also offer mortgages with a low down payment and charge a higher interest rate rather than requiring you pay for PMI. These lender-paid options can lower your monthly mortgage payment, but consider the long-term cost and whether it's a worthy tradeoff.\n*   **Get a piggyback loan.** Another way to avoid PMI without putting 20% down is to get a piggyback second mortgage. A common arrangement is a 80-10-10 loan, where you borrow 80% with your primary mortgage, borrow 10% with your second mortgage and put 10% down. You'll need to repay both mortgages, but sometimes it can be cheaper than a single mortgage with PMI.\n*   **Choose an adjustable-rate loan.** An adjustable-rate mortgage (ARM) has an initial period (often lasting one, three, five, seven or 10 years) with a fixed interest rate. After the initial period, the rate can be regularly adjusted (once a year is common) until it's paid off. ARMs often start with a lower rate and monthly payment than fixed-rate mortgages, but you're taking on the risk of having a higher interest rate and corresponding monthly payment later. If you're planning to sell your house within a few years, this could be a good solution—less so if you plan to stay for decades.\nFiguring out which mortgage offers will be best when you're buying a home is an important decision, but know that there will also be ways to lower your monthly mortgage payment after you've moved in. END