Here are some ways to save money with home mortgage refinancing:
Lower the mortgage rate.
A quick way to save and pay less money for a mortgage refinance is to pay as little as possible to borrow the money. Interest fees are usually associated with the rates lenders pay to their investors. If you can acquire an interest fee that is just 1% lower than your current fee, that would be hundreds in dollars of savings on the mortgage. Your credit score will play a big role in your mortgage rate. Keeping a credit score of 700 – 800 is ideal for getting the best rate available.

Shorten the length of the loan
Shortening the total number of monthly mortgage payments is yet another good way to reduce the cost of a mortgage refinance. Payments over the course of say 15 years in stead of 25 years will be higher but the savings had from finishing paying your home off will usually outweigh the higher monthly mortgage payment costs.

Pay as much as you can every month.
Even if it is not financially possible to refinance into a shorter mortgage, you should add as much as you can to each mortgage payment to pay the principal down. Even adding even small amounts of extra money to each payment could save you thousands in the long run. Try to avoid a refinancing loan that has what is called a pre-payment penalty. This will take away from the savings you have earned.

Pay your first mortgage payment upfront.
Something that is smart to do is make a 1 month prepayment. At the closing, make your first mortgage payment as this will be an advance payment on the principal and will save you a lot over the course of the loan. This will help you save yet again with a little amount of money and long term thinking. You must think long term and before you know it you will own the home and be mortgage free.

Shop a quoted mortgage rate around.
Once you get a quote you like, and it is in writing, shop it around. Shopping a quoted mortgage rate to lenders gives credibility to you and that potential lenders banks. Often, a lender will match or better the terms in one way or another to get you as a customer. Remember you are not limited to the lender you currently have. Use the internet to get quotes and contact information from potential mortgage lenders.

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