If you are refinancing your existing mortgage to lower your monthly payment amount, there are steps you can take to ensure you get best loan. There are two ways to lower your mortgage payment, regardless of your credit. Here are three tips to help you find the best mortgage with the lowest payment.

I. Do Your Homework and Shop Around

Bargain shopping can save you thousands of dollars if you know how to go about it. Don’t settle for the first promising mortgage offer you get; you need to compare loans from a variety of mortgage lenders to find the most competitive offer for your financial situation. When you compare loan offer it is important to compare all aspects of the loans, not just the interest rates.

II. Clean Up Your Credit

One way of lowering your mortgage payment is to qualify for a lower interest rate. The interest rate you will qualify for depends largely on the contents of your credit records and your credit score. Your credit score, also called your FICO score, is based on the sum of positive and negative information in your credit history. Any steps you take to improve your credit score will improve the interest rate you qualify on your new mortgage. You can learn more about cleaning up your credit and qualifying for the best mortgage by registering for a free mortgage guidebook.

III. Choose a Shorter Mortgage Term

Term length is the second factor determining your mortgage payment amount. Choosing a mortgage with the longest term length will give you the lowest term length possible; however, longer term lengths mean higher finances charges over the life of the loan. You can learn more about choosing the optimal term length for your mortgage by registering for a free mortgage guidebook.