One tip to save money on your mortgage is to use a mortgage broker. Mortgage brokers have access to the wholesale division of numerous lenders. Mortgage brokers are able to obtain the best rates for you based on your circumstances. Mortgage brokers also have the expertise to provide a loan that is right for you.

Shop around between two or three different companies to make sure you are getting a fair deal. Pay attention to all of the numbers so that you can compare "apples to apples". One company may be quoting you a lower interest rate but you may be paying points for that rate and it may not be the best deal for you and your specific situation.

Determine which loan program is best for you. As an example, do not pay for 30 years of expensive rate protection if you are only going to be in your home for six or seven years.

If you are going to be in your home for two or three years, get a mortgage with a pre-payment penalty of two or three years. Your rate will be better and your payment will be lower.

If you are certain that you will not be refinancing in the next 2-3 years, but may possibly move within that time frame you may still want to add a "soft" prepayment penalty to your loan. A soft prepayment penalty is only assessed if you refinance your home, and is not imposed if you sell your home. A "hard" prepayment penalty is always charged if you refinance, or move within the prepayment term.

No matter how good the offer is, make sure you're working with someone you like and feel comfortable with. If the mortgage company you're working with feels sleazy, but you're working with them as they had the best offer, you're probably in for some trouble when it comes to finalizing the paperwork. Ask the company you want to work with for customer references and follow up to make sure they treat their customers right.

Does your credit score have room for improvement? The difference between a 600 credit score and a 700 credit score could end up being hundreds of dollars per month. Be sure to carefully review your credit report for errors that could be damaging your score. Many times these errors can be corrected in time to qualify you for a better money saving mortgage.

Also, to save money in the long run, a nice option is to get on a bi-weekly payment plan- cutting the amount of years to pay on your existing loan yet keeping your payments the same every month.

One way to make an extra payment per year is to apply a portion of your tax refund to your principal loan amount. This simple method of prepaying your mortgage can dramatically accelerate the paying down of your loan.

If you currently have a 30-Year Fixed Rate Mortgage, making an extra payment every year can shorten the 30 years mortgage to about 25 years and save on the overall interest payments. Making a 13th payment every year can save approximately 20% in total interest on average. Depending on the mortgage size, this can amount to tens hundreds of thousands of dollars.

A great money saving tip for self employed borrowers and business owners seeking to lower their minimum payments is to explore a loan with multiple payment options. Refinancing into one of these so called "Cash Flow" loans allows you to defer interest in exchange for a lower payment on an as needed basis, and are so named because the additional cash flow caused by the interest deferral can be used to combat temporary declines in revenue or income, handle personal or business expenses or to invest in liquid, performing asset classes. While deferring interest is an attractive option for many, borrowers should ask a refinancing professional specializing in cash flow option loans for a thorough explanation of the risks and rewards of harnessing deferred interest refinance loans.

Refinancing any unsecured debt on to your mortgage will more then likely lower your monthly bill payments. If you take the money you save from having lower monthly payments and apply it to the principal balance of your mortgage you can pay down your mortgage many years ahead of schedule. The interest is also tax deductible and may in turn get you a larger tax refund.

A good way to save money overall on your mortgage would be to get a shorter term. In the life of the loan you could end up saving hundreds of thousands of dollars.