Everyone loves a bargain and getting a lower mortgage interest rate can save you a substantial amount of money over the life of your loan. There are several ways to go about ensuring that you pay the least amount of interest when you take on a home mortgage and to calculate the best way to pay and save in your mortgage payments. Listed below are some of these ways.

1. Be aware of your credit score.

Good credit is the key to not only getting a mortgage, but to getting the best interest rates available. Mortgage lenders like to reward borrowers that pay off their bills in a timely manner. Chances are if you have been faithful with your other payments, you will be faithful to pay them back, so they can afford to take a risk on you and offer a lower interest rate. Be sure you use a mortgage calculator, you can find many mortgage calculators online to help you with this process.

2. Close any existing credit card accounts that you no longer use.

The number of your credit card accounts can affect your mortgage application even if the account is no longer in use. Lenders see open accounts as potential for debt, which adds a risk of them not getting their money back. To balance this risk, they will often charge you a slightly higher interest rate.

3. Lock in interest rates before you close.

Once you have agreed on a low interest rate, ask the lender to lock in that rate. From the time you agreed to take on a mortgage to the time that you actually sign the contract, rates could vary greatly so be sure to lock the rate right when you agreed to take a mortgage.

4. Make the biggest down payment you can afford.

Putting a down payment from your savings on your house lowers the amount you plan to finance thereby lowering the interest you will pay over the life of your loan. This is when, again, using an online tool like a proper mortgage calculator tool, can tell you exactly what can be the best way for you to pay your mortgage payments.

5. Shop Around.

You don’t have to work with the first lender that you approach. With the vast amount of online mortgage brokers, it is easy to compare offers and pick the company that offers you the lowest interest rate. Don’t be afraid to tell brokers that you are shopping around, or ask them if they can match the interest rates of a competitors quote.