There is more to consider than the lowest monthly payment if your goal is to save money on your mortgage loan. Here are tips to help you save money on the finance charges you pay over the life of your mortgage loan.

Compare Mortgage Offers

It always pays to shop around and do your homework before taking out a mortgage. If you have poor credit this step can save yourself a lot of money by researching loan offers. One of the loan factors you need to carefully consider are the lender fees and points included in the loan offers. These fees are subject to negotiation; do not be afraid to haggle with your lender for better terms or lower rates and points. Make sure you examine the Good Faith Estimate carefully when comparing loan offers and compare all aspects of the mortgage offers you consider.

Build Equity in Your Home

The fastest way to build equity in your home is to shorten the term length of your mortgage. By choosing a mortgage with a shorter loan term you will have a higher monthly payment; however, you should qualify for a lower interest rate and pay less to the lender in finance charges over the life of the loan.

Make Biweekly Payments

A simple way to save a lot of money on your mortgage is to make your mortgage payment bi-weekly. To do this, divide your regular monthly payment in half and pay that amount every two weeks. Doing this may make it easier on your budget and the end result of one year of biweekly payments is an extra mortgage payment paid entirely to the loan principle. The compounded savings over ten years of biweekly payments can add up to a hefty sum. To learn more about saving money on your mortgage and avoiding common mortgage mistakes, register for a free mortgage guidebook.