Lower the interest rate The quickest way to pay less for your home refinancing loan is to pay less for the cost of borrowing money. Most interest fees are tied to the rates that the lender must pay to their investors. An interest fee that is even one percent lower can make hundreds of dollars difference in the overall cost of the home mortgage refinance. Many times, the amount of interest rate that you will pay as the cost of borrowing money is dependent upon the credit scores which show on your homeowners credit report. Keep your credit score in the high 700s or even 800s and you will pay much less for mortgage loans. Reduce the loan term Another way to reduce the cost of home refinancing is to shorten the number of monthly or periodic payments f loan amortization calculator or the duration of the loan. Amortized payments spread over 20 years cost a little more each month, but not as much as the cost of a 30 year mortgage loan. So, pay slightly more each month for fewer years and you will make huge savings on the total amount of interest that you pay over the cost of the loan period. Pay a little extra each month Even if you can’t shorten the term of the loan from 30 years to 15 years, you can add five or ten dollars with each payment to apply to the principal. You will save hundreds or even thousands of dollars in interest payments as you reduce the principal balance each month. Be sure that you do not agree to a home refinancing loan that charges a pre payment penalty, as this would reduce the effectiveness of this cost saving measure.