SAVE MONEY ON YOUR MORTGAGE

1.  All else being equal, choose the lender that has the lowest interest rate. Use a home affordability calculator to find out the answer to the question that often haunts you, " How much house can I afford?" Determining this will give you an idea of how much mortgage you can go for. This will help you overcome financial problems since the loan amount calculated will stay within your budget.

2.  Opt for a fixed interest rate throughout the length of your loan at a rate that is affordable for you. You won't face any hitches at some time in the future.

3.  If you select an adjustable rate mortgage, you can adjust it on a quarterly basis. You should do it if you feel that rates will drop temporarily and the lender provides a rate cap.

4.  Raise your down payment or equity so you will borrow only as much as you need. If, however, you have the opportunity to invest your money at a higher rate, then put down only the minimum amount of equity possible.

5.  Reduce the term of your loan. Your interest costs will diminish. Making additional payments can also reduce your loan term since they pay down the principal more quickly. If you don't do this, the major part of your payments go towards the interest. As a result, it takes more time to pay off the loan. You can shorten your loan term by nearly 10 years just by making one extra payment per year.

6.  If you're buying a home, don't be afraid to ask the seller to pay all or a part of your closing costs. A lender typically limits the amount a seller can pay to anywhere from 3% to 6% of the purchase price. This could save you thousands of dollars.

7.  Make biweekly mortgage payments, which allows you to repay your loan sooner. Ultimately, this also helps you save money on interest. As an alternative, pay more on each mortgage payement. As an example, if your mortgage payment is $530.00, pay $600.00. It's amazing how much that little extra helps to bring down the principle balance.

8.  Go for refinancing your mortgage if rates become so cheap that it is reasonable to do so. There are, however, other considerations to take into account when trying to decide to refinance. The Street may help you determine if refinancing is right for you.

9.  If possible, negotiate lenders "garbage" fees like the loan origination fee, processing fee, underwriting fee, etc. Don't hesitate to ask that these be reduced. Shop and compare homeowners insurance policies. You can probably get one with a lower rate than any offered by an insurance carrier of your lender.

10.  If you are getting your mortgage through a bank that you do business with, request that your overall business relationship be taken into consideration. It could lower your interest rate if you have a substantial amount of deposits or other dealings.