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  • Writer's pictureJulia Bandel

One simple strategy to lower your Colorado mortgage payment

Everyone knows that interest rates have gone up and that has caused many potential homebuyers to press pause on their journey towards homeownership. This may present some challenges, but if you still want or need to buy a home this year, there are ways to lower your mortgage payment regardless of the interest rate.

Today, we investigate one simple strategy.

Before we dive in, let's discuss the four major components of a mortgage payment.

Total mortgage payment = Principal + Interest + Insurance + Property Taxes

  • Principal is the amount you borrowed and must pay back.

  • Interest is the the amount the lender requires to you pay for borrowing the principal.

  • Insurance can include mortgage insurance if your lender requires and also the basic homeowners insurance that protects your property from damage.

  • Property Taxes are generally based on the value of the home are go towards funding such as school districts and other local services. Property taxes can vary by county and also can be influenced if you are purchasing a new construction home vs. a home built previously.


Based on these four components, one of the simplest and easiest strategies to lower your mortgage payment can be to find a home that is has lower property taxes. This means you may have to broaden your horizons on the location of your home, but the payoff can be well worth it.

When observing this chart of Colorado counties provided by, you can see the average effective property tax rate and how it varies between counties. Based on this information, you can determine which county has a lower tax rate and therefore, create yourself a lower mortgage payment simply by purchasing a home in that county versus purchasing a home of similar value in a county that has a higher tax rate.

As real estate professionals, we can provide you guidance and clarity on which Colorado counties may be the best option for you based on your unique situation. It is also worth the time to discuss the differences in taxation between new construction homes and resale homes as they are generally much different in property taxes and in recent days, interest rates. Property taxes are one piece of the payment puzzle can drastically influence your home buying power and we can't wait to help you maximize it!

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