Homebuyer FAQ Series: Strategies to Save Money on Your Mortgage

Welcome back to our Homebuyer FAQ Series, a four-part October blog series where we’re answering real questions from real consumers about the mortgage and homebuying process.

In Part 1, we covered the basics every homebuyer should know: closing costs, pre-approvals, mortgage insurance, and more. (If you missed it, you can catch up here.)

Now we’re diving into something everyone wants to know: how to save money on your mortgage. It doesn’t matter if you’re buying your first home or planning a refinance; these are the smart strategies that can help you spend less, both now and over the life of your loan.

What loan programs or strategies help first-time buyers reduce their monthly payments?

Good news: there are more ways than ever to make homeownership affordable. Programs like FHA loans, down payment assistance, and temporary rate buydowns can all lower your monthly costs.

Some lenders also offer first-time buyer incentives, such as reduced fees or credits toward closing costs. The key is working with a lender who knows what’s available in your area and can tailor options to your situation.

What are the benefits of a 15-year mortgage compared to a 30-year mortgage?

It’s all about your goals and budget.

15-year mortgages come with lower interest rates and help you build equity faster, but the monthly payments are higher.
30-year mortgages keep payments lower and leave more room in your monthly budget.

If you like the idea of paying off your home sooner but want flexibility, consider biweekly payments. Making half a payment every two weeks adds up to 13 full payments a year, cutting years off your loan and saving thousands in interest.

What happens if I refinance later? Are there limits or costs?

Refinancing replaces your current mortgage with a new one, often at a lower rate or better terms. There are closing costs involved (typically 2–5% of the loan amount), but refinancing can be worth it if the long-term savings outweigh those upfront expenses.

There’s no set limit to how many times you can refinance, but you should always run the numbers carefully. A good rule of thumb: if you can recover your costs within two to three years, it’s probably a smart move.

How can you tell if a mortgage broker is giving you their best rate?

Transparency matters. To make sure you’re getting a fair deal, always:

Request a Loan Estimate from your lender.
Compare at least two offers.
Ask how your broker is compensated. Some earn more on certain programs, which can influence what they recommend.

If a lender only “matches” a better quote you found elsewhere, that’s a red flag. A trusted lender should give you their best offer up front.

Remember: every borrower’s situation is unique, but saving money on your mortgage is always worth exploring. Connect with Luminate and we’ll help you compare options, understand the fine print, and make confident financial decisions.