Trying to cut corners and make buying possible? Here are some tips to cut down on your borrowing costs.

Look at more small scale banks: Local lenders did not make the mistakes of many big time mortgage lenders. They did not engage in as many subprime or option-ARM loans. Right now,they might have the resources to offer better deals.

Check on a home equity credit line: While at the moment, HELOC´s are not as easier to acquire, they are cheaper then total refinancing. Their average rates are around 5.73%, which is one point lower then those for jumbo loans. There is also no upfront fee. The only potential drawback is that they are adjustable; however, with the economy at this moment, a sudden rise in interest rates is not likely.

Work on your credit score: Before only those with a score of 620+ could qualify for a good rate with Fannie and Freddie. However, once October 1^st hits this figure will rise to 720. Credit scores above open up the possibilities for more rate perks. Get a credit report ASAP and start working on fixing any problems.

Shop around: Right now mortgage interest rates are going to vary with each bank. Fannie and Freddie are buying less mortgages, which cuts their ability to set prices for the masses. Try to get quotes from around 5 lenders before deciding on one, that way you can try to find the lowest and best rate for you.