What are ways to save money on a mortgage?

Charlie, shop several lenders and compare the interest rate, APR, lender fees and closing costs, not just the monthly payment. Ask about discount points, rate buydowns and available loan programs. Improving your credit and making a larger down payment can also help you qualify for better terms.

You said you do not know how to ask. So here are the actual sentences to say, and why each one works. First, separate two things lenders tend to blur. Some moves lower your interest RATE. Others lower your total COST without touching the rate. You want both. What moves the rate: - Credit score tiers. Pricing moves in steps, not smoothly. Going from 719 to 720, or 739 to 740, can help your pricing more than the previous fifty points did. Ask: "What is my next score tier, and what would crossing it save me?" Sometimes paying down one card balance gets you there in 30 days. - Loan to value tiers. Same idea. 80 percent, 75 percent and 70 percent are common breakpoints. Ask: "Would putting 1 percent more down move me into better pricing?" - Discount points. You prepay interest to buy the rate down. Always ask for the break-even: "How many months of savings pays back the point cost?" If you might sell or refinance before then, skip it. With the 30-year fixed averaging around 6.7 percent in early August 2026, points are worth pricing out but are not automatic. - A shorter term. A 15 or 20 year fixed prices below a 30. Bigger payment, far less total interest. - Actually shopping. Rates differ meaningfully between lenders on the same day. Do not fear the credit pulls. Current FICO models treat all mortgage inquiries inside a 45-day window as one inquiry, 14 days on older versions, so cluster your shopping. What lowers your cost without moving the rate: - Lender credits. The reverse of points. Slightly higher rate, cash toward your closing costs. Useful when cash is the constraint. - Seller concessions. Ask the seller to pay closing costs, or better, fund a rate buydown. In a slower market many sellers prefer that to cutting price. - Shoppable fees. You may choose your own title and settlement providers. Most buyers never try. - Mortgage insurance strategy. This is real money and it gets forgotten. Under the Homeowners Protection Act, on most loans you can REQUEST cancellation of borrower-paid PMI once the balance reaches 80 percent of the original value, and the servicer must terminate it automatically at 78 percent if your payments are current. Put that date on a calendar the week you close. FHA mortgage insurance follows different rules and usually does not come off at all, which is worth knowing before you pick the loan. Now the script. Do all of this on the same day. 1. "Please send me a Loan Estimate." Not a quote, not a screenshot of a rate sheet. The Loan Estimate is a standardized federal form, which is what makes lenders comparable. 2. Get three of them. Same loan amount, same down payment, same day. 3. "What is your rate at zero points and zero lender credit?" This is the apples to apples question. Without it you are comparing a bought-down rate against one that was not. 4. Compare page 2, sections A, B and C. A is the lender's own charges. B is third-party services you cannot shop for. C is services you CAN shop for. A and C are where the negotiating happens. 5. "Can you match or beat this?" and send the best Loan Estimate you have. Lenders compete when you make it easy. Two more after you close: - Extra principal, or biweekly payments, cuts years of interest. Confirm your servicer applies the extra to principal instead of holding it. - Recasting. If a lump sum comes your way later, many lenders will re-amortize the loan for a few hundred dollars, lowering the payment while keeping your rate and term. Almost nobody knows this exists. It is not available on FHA, VA or USDA loans, so ask first. I am Zoltan Peresztegi, a real estate professional on the Palos Verdes Peninsula and throughout the Los Angeles South Bay. I would rather a buyer of mine spend two hours shopping lenders than thirty years regretting it. Zoltan

Absolutely. One of the best ways to save money is to shop around with multiple lenders. Even a small difference in interest rate or lender fees can save you thousands over the life of your loan. You should also ask your lender about: * First-time homebuyer programs * Down payment assistance * Discount points to lower your interest rate * Temporary rate buydowns * Different loan terms, such as 15-year vs. 30-year mortgages If possible, improving your credit score, reducing debt, and making a larger down payment before buying can also help you qualify for a better rate. Finally, compare the **APR** in addition to the interest rate. The APR includes many of the loan's fees and provides a better picture of the true cost of borrowing. **Juan Picos** REALTOR® | JohnHart Real Estate Serving Burbank, Glendale & Greater Los Angeles

Yes! There are several ways to save money on a mortgage, and the best strategy depends on your financial situation. Start by comparing offers from multiple lenders, since interest rates and closing costs can vary significantly. You can also ask about loan options such as discount points, temporary rate buydowns, and first-time homebuyer assistance programs if you're eligible. Improving your credit score, paying down debt, and making a larger down payment can often help you qualify for a better interest rate. It's also important to compare the **APR**, not just the interest rate, since the APR includes many of the loan's fees and gives you a better picture of the total cost. Finally, don't be afraid to ask your lender to explain every option available. A good lender and Realtor will help you compare programs and choose the one that best fits your budget and long-term goals. **Juan Picos** REALTOR® | JohnHart Real Estate Serving Burbank, Glendale & Greater Los Angeles

What are ways to save money on a mortgage? Are there ways to get a lower interest rate on a mortgage? Or to save money somehow? I've seen posts about this, but I don't know what to do, say, or how to ask the right questions. Asked by Charlie | Bentonville, AR | 02-12-2025 | 752 views | Finance & Legal Info | Updated 1 year ago

Yes, there are a few real ways to save money, but don’t just chase the lowest rate. Sometimes the “lowest rate” comes with higher fees, points, or loan terms that don’t actually help you long term. Start by asking lenders for a full loan estimate, not just a rate quote. Then compare the interest rate, APR, lender fees, points, mortgage insurance, and estimated cash to close. Ask them directly: “What would my rate be with no points, one point, and two points?” That one question helps you see whether buying down the rate actually makes sense. You can also save by improving your credit score, lowering your debt, increasing your down payment, shopping at least two or three lenders, and asking about first-time buyer programs, local grants, or temporary buydowns if the seller is offering concessions. I’ve seen buyers save a lot just by comparing lenders side by side. Don’t be shy about it. Tell each lender you’re shopping around and ask them to explain the numbers in plain English. A good lender won’t get offended, they’ll help you understand what you’re actually paying for.

Weekly or bi-weekly mortgage payments is the easiest way; this allow you to pay off sooner. Lower interest rates are only accomplished if rates fall and you refinance. Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

There are several ways to reduce what you pay, both upfront and over the life of the loan. Shop multiple lenders. This is the single most impactful thing you can do. Get quotes from at least three lenders, a big bank, a local credit union, and a mortgage broker. Rates and fees vary more than most people realize, and a quarter-point difference in rate saves you thousands over 30 years. Buy points to lower your rate. You can pay upfront at closing to reduce your interest rate. One point costs 1 percent of your loan amount and typically lowers your rate by about 0.25 percent. This makes sense if you plan to stay in the home long enough for the monthly savings to exceed the upfront cost, usually 4 to 6 years. Make a larger down payment if you can. More down means a smaller loan, lower monthly payment, and possibly avoiding PMI. Even going from 5 percent to 10 percent down makes a meaningful difference. Choose a shorter loan term if you can afford the higher payment. A 15-year mortgage has a significantly lower interest rate than a 30-year, and you pay far less in total interest. The monthly payment is higher but the savings over the life of the loan are enormous. Set up biweekly payments after closing. Paying half your mortgage every two weeks results in 13 full payments per year instead of 12, which can shave years off your loan and save tens of thousands in interest. Lock your rate at the right time. Once you're under contract, ask your lender about rate lock options. If rates are volatile, a longer lock period gives you protection against increases between contract and closing.

The easiest trick is to switch to bi-weekly payments. By paying half your mortgage every two weeks instead of once a month, you use the calendar to make one extra full payment a year—which knocks years off your loan and saves thousands in interest. You should also closely watch your home's value; the second you have 20% equity in the property, call your lender immediately to cancel your Private Mortgage Insurance (PMI).

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.

Always check your credit union.

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