The most excellent way to save money on your home loan is to get the interest rate abridged. Cutting the interest rate by even a quarter points can save tens of thousands of dollars in interest payments over the life of the loan. Regrettably, lenders are very opposed to to cutting interest rates. The only bullet you actually have in your arsenal is to frankly state that you will take your business elsewhere if they do not cut the rates. As the real estate market is cooling off, lenders are becoming more amenable to these suggestions since they no longer have loans just pouring through the doors. If the market heats back up, you can forget about the feasibility of this position.
If you are going to attempt to get the interest rate knocked down, information is your friend. You will have far more success if you can show the lender a better interest rate being offered by another lender. Look for marketing pieces by other lenders on the same or similar loans.
There is truly only one definite way to cut down the interest rate on the loan. It has to do with points. If you have a pool of cash at the time of application, you can attempt to buy down the interest rate by paying more points at the outset. While lenders are receptive to this approach, most people do not have large piles of cash lying around. Scraping enough together for the down payment is frequently an adequate problem. Still, there are other ways to save money on your mortgage.
If a lender is charging you points on your home loan, they are highly flexible. Lenders view points in a more flexible manner. The higher the value of the home you purchase, the more a decrease in points can save you money. If nothing else, you have nothing to lose by asking for a quarter or half point reduction.
Cutting the best deal possible at the time you apply for a mortgage is critical. Even small concessions by the lender can save you tens of thousands of dollars over the life of the loan.