What are ways to save money on a mortgage?

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.

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

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?

Always check your credit union.

Shop around.

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