It is understandable that the top priority of most home buyers who are looking for mortgage is to get the lowest monthly payment. However, looking at how much it’s going to cost you over the long term, in both interest payments and fees is an even better idea. If you look at these costs, then you can save a significant amount over the years.

Even if you already have a mortgage, there are still a number of strategies you can use to reduce the total amount of interest you’ll pay. Most of these accelerate the speed with which you repay the loan, and that reduces your long-term interest costs.

If you want to reduce the long-term cost of your mortgage, then here are several ways you can do so.

Try to compare offers
When you are shopping for a mortgage, it always pays to get offers from several lenders. Offers can vary substantially. Especially if your credit is considered sub-prime, you shouldn’t accept a high-interest rate mortgage without looking for a better offer.

Try to consider fees
One factor that increases the cost of your mortgage is the fees or points lenders add onto the deal. Be sure to look at them carefully and don’t be reluctant to challenge fees that seem too high. You can use the annual percentage rate (APR), which includes both the interest rate and the fees if you want to compare offers.

Shorten the term
If you intend to be in the house for some time, you can lower your interest costs substantially by choosing a shorter mortgage term. Not only will this enable you to save significantly over the life of the loan, but you will also increase your monthly payment. Aside from that, it may also enable you to get a reduced rate on the mortgage. For instance, if you choose a 15-year term at 5.75 percent versus a 30-year term at 6 percent, then you can save $66,364 over the life of a $100,000 mortgage.

Pay bi-weekly
Consider paying your mortgage every two weeks instead of monthly. While you will hardly notice the difference, this can still cut the amount of interest you pay since your principal decreases more steadily. There are26 two-week periods in the year which means that you actually make an extra monthly payment each year, further shrinking the principal.

Cut the PMI
You may be required to take out private mortgage insurance (PMI) if your down payment happens to be less than 20 percent of the house price. However, you can petition your lender to cancel the insurance once your mortgage principal decreases to 80 percent of the home’s value. Before this could happen, you have to repay some of the principal or if the home’s value rises quickly. While savings should make the expense worthwhile, you may have to have the house reappraised.

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