Shifting costs to closing changes what you pay up front, not your monthly payment. The one real lever is whether taxes and insurance run through an impound account. Principal, interest, taxes, and insurance are what they are for the loan and property you chose. What you can sometimes change is whether taxes and insurance get collected monthly inside your payment through an impound (escrow) account or paid by you directly. Whether waiving impounds is even available depends on your loan type and down payment, so confirm eligibility with your lender. Whether waiving them is smart comes down to what you would do with the money: - Hold the money yourself if you can reliably earn a meaningful return on cash and you have the discipline to set aside a large tax and insurance bill and pay it on time. - Pay monthly through impounds if your idle cash earns very little or budgeting for a big annual bill sounds like a hassle you would rather skip. This is the path we personally lean toward, so the bills simply get handled. Neither choice is right for everyone. Model both against your own numbers and pick the one you are comfortable living with.