Although making a large down payment on your mortgage does cut the payment, it depends on what you mean by “Large”. I speak to clients every day who think that an extra $5000.00 to $20,000.00 will completely change their payment for the better. I had a client yesterday tell me that he was planning to wait 5yrs in order to save $6000.00 per year, $30k total and then purchase… and while he is waiting to save $30k, the housing prices have increased by much more than that, interest rates are up over a percent, and that $30k would only have saved him about $150 a month anyway!! $30k is a lot of money to save and it takes a long time to save that much. Here is an idea, put less down, get into a house TODAY, and start earning equity!! In 5yrs you could have more than $100k in equity. THAT is a LARGE down payment!
To keep things in perspective, for every $10k that you put down, you will lower your monthly payment by about $50 a month (only $50 a month), less than you probably thought, right? Most people are very surprised by that. Call me for a reality check, this is what I do, this is what I LOVE, I will shoot you straight!