Debt consolidation

One of the best ways to save money is to consolidate your debts into a single loan with a lower interest rate and a lower monthly payment. Many borrowers choose to consolidate their high-interest debt, such as credit cards and auto loans, when they refinance their home. They are essentially lumping all of their debts into their mortgage.

Deferral

Some loans, especially student loans, allow you to defer or waive your loan payments altogether, depending on your situation. Major life changing events such as returning to school, receiving a grant, disability, unemployment, volunteering, military service and other situations may qualify you to defer your loans without penalty for a certain amount of time. Contact your lender for more details.

Refinancing

When your financial situation changes for better or worse, it may be in your best interest to refinance. By refinancing, you essentially go through the loan application process again, but with a different set of variables. If there is a change in the federal interest rate, income or value of your home, it may be a good time to refinance. By refinancing at the right time, you can reduce your interest rate.

Cleaning up your credit report

Your credit score is a major factor in determining the terms of your loan. Make sure to review your credit report from all three major credit reporting bureaus (you can get a free copy of your report once a year online). Make sure there are no inaccurate or outdated items. Once you improve your credit score, you can negotiate a better interest rate on your loans.