Person using calculator

Reduce Your Monthly Mortgage Payments by Increasing Your Down Payment


The size of your mortgage payment is determined by two factors – the interest rate and how much you borrow. There is little you can do to reduce interest rate. However, you can reduce your mortgage payment by having a larger down payment. Using an automatic savings plan is the easiest way to build your down payment.

Here is a little chart showing the effect of having a larger down payment for a home costing $250,000.

Cost of the home

Down payment

Mortgage Amount

Monthly payment




















$ 998

(Assumes an interest rate of 7% and a 30-year amortization.)

You may already have some savings but establishing a disciplined savings habit can help you increase those savings, increase your down payment and reduce your monthly mortgage payment.

Here are some examples of how little you need to save monthly to add to those savings.

Increase your savings by

Over 6 months

Over 12 months

Over 18 months

Over 24 months

Over 30 months

Over 36 months




































(Assumes a 3% earnings rate.)

Start Your Automatic Savings Today

There is no easier way to save than with an automatic savings plan. If you are already using direct deposit for your paycheck, have your financial institution transfer the amount each month. Here is an Automatic Transfer Authorization form to help you enroll. You can also have your employer deduct the amount each month and deposit into the account of your choice. Here is a Payroll Deduction Direct Deposit form.

If you are not already using direct deposit for your paycheck, here is a Payroll Direct Deposit form to help you get started.

Personal – Homebuying and Refinancing

Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.