What are ways to save money on a mortgage?

Ways to Save Money on a Mortgage (Big Picture)
There are three main levers you can pull:
Interest rate
Loan structure & fees
Timing & strategy
Even small changes can save tens of thousands of dollars over the life of a loan.
1. How to Get a Lower Interest Rate
Shop lenders (this matters more than people realize)
Rates and fees vary a lot between lenders.
What to say:
“Can you send me a Loan Estimate so I can compare?”

Compare:
Interest rate
APR (this shows total cost)

Origination fees
Credit pulls within a 14–45 day window for mortgages typically count as one inquiry.

Improve your credit (even slightly)
Best rates usually start at 740+
Pay credit cards down below 30% utilization
Don’t open new accounts before applying

Ask the lender:
“What credit score tier am I pricing into, and what would improve my rate?”

Choose the right loan type
Conventional loans often have better rates if you qualify
15-year loans = lower rate, higher payment, huge interest savings
ARM loans can be smart if you won’t keep the home long-term

Ask:
“Can you show me 30-year, 15-year, and ARM options side-by-side?”

Buy down the rate (points)
You can pay money upfront to lower your rate.
Ask:
“What would my rate be with zero points vs. buying it down?”
Then ask:
“How long would it take to break even?”
If you’ll sell or refinance before then — don’t do it.

2. Ways to Lower Your Monthly Payment
Increase your down payment (strategically)
20% avoids PMI
Even going from 3% → 5% can help
But… sometimes keeping cash is smarter.
Ask:
“How does my payment change at 3%, 5%, 10%, and 20% down?”

Get rid of PMI faster
If you have PMI:
Ask when it can be removed
Extra payments toward principal help

Ask:
“When can PMI be removed, and what triggers that?”

Negotiate lender fees
Some fees are negotiable.

Ask directly:
“Are any of these fees adjustable or waivable?”
Worst they say is no.

3. Use the Contract to Your Advantage
Seller concessions
You can sometimes have the seller pay:
Closing costs
Rate buy-downs
This is very market-dependent, but powerful.

Ask your agent:
“Can we structure the offer to get seller-paid closing costs or a rate buy-down?”
Lock your rate wisely
Rates move daily.

Ask:
“How long is the rate lock, and what happens if rates drop?”
Some lenders offer a float-down option.

4. Long-Term Money-Saving Moves
✅ Make one extra payment per year
Apply it to principal
Can shave years off your loan

Even $100/month extra helps.
Refinance (when it makes sense)
Refinance if:
Rates drop by ~0.75–1%
You’ll stay in the home long enough to break even

Questions You Can Copy & Paste to a Lender
Here’s a cheat sheet you can literally send:

• What rate and APR do I qualify for today?
• What loan options should I compare?
• What are the total closing costs?
• Can I buy down the rate, and what’s the break-even point?
• How can I remove PMI sooner?
• Are any lender fees negotiable?
• How long is the rate lock and is there a float-down option?

Shop around.

Ask a realtor in your area for advise on getting a good mortgage.

Always check your credit union.