10 Creative Ways to Save Money While Refinancing Your Home

Discover 10 innovative strategies to cut costs and maximize savings when refinancing your home loan.

1. Improve Your Credit Score

A higher credit score can qualify you for better interest rates and lower fees when refinancing. Take steps to boost your credit before applying for a new loan.

2. Shop Around for Lenders

Don't settle for the first offer you receive. Compare rates and terms from multiple lenders to ensure you're getting the best deal possible.

3. Consider a Cash-Out Refinance

If you have equity in your home, a cash-out refinance can allow you to access that cash for other financial goals. Just be sure to use the funds wisely.

4. Opt for a Shorter Loan Term

While a 30-year mortgage may offer lower monthly payments, opting for a 15 or 20-year term can save you thousands in interest over the life of the loan.

5. Negotiate Closing Costs

Some closing costs are negotiable. Don't be afraid to ask your lender to lower or waive certain fees to reduce the overall expense of refinancing.

6. Refinance with Your Current Lender

Your current lender may offer a loyalty discount or special incentive to keep your business. Inquire about refinancing options with them to see if you can save.

7. Make Extra Payments

Even small additional payments towards your mortgage principal can add up over time and help you pay off your loan faster, saving on interest costs.

8. Consider Biweekly Payments

Switching to biweekly mortgage payments can help you make an extra full payment each year, accelerating your loan payoff and reducing total interest charges.

9. Use Windfalls Wisely

If you receive a bonus, tax refund, or other financial windfall, consider putting it towards your mortgage principal to chip away at the balance faster.

10. Stay Informed

Keep an eye on market trends and interest rates. If rates drop significantly after you refinance, you may have an opportunity to save even more by refinancing again.