Related Posts with Thumbnails

Get the right mortgage

Never underestimate the impact of finding the right mortgage. You could shave years off of your mortgage simply by knowing how--and when--to negotiate. Look at these tips before you start your mortgage search to save money on the home of your dreams.
Don’t pay more than you have to Making more than the minimum down payment can take years off of your mortgage term, not to mention thousands of dollars in interest. Also, choosing a mortgage with a shorter term and higher payments is a great way to save interest. However, if you don’t feel comfortable committing to bigger monthly payments or putting all of your savings into a down payment, you could also make a plan to pay one additional payment a year. This prevents you from locking yourself into a mortgage that is difficult to maintain while also moving you toward your goal of paying off your home more quickly. Use a mortgage calculator to create a home financing plan that best fits your needs, and then go find it.
Clean up your credit if you wait until you’re ready to buy a home to take a look at your credit score, it may be too late. You should start early by catching any discrepancies that could potentially ruin your credit. It is also a good idea to eliminate as much of your personal debt as possible, which includes paying off credit card balances. These actions will make you look more attractive and like less of a risk to mortgage lenders, prompting them to offer you a lower interest rate.
Test the waters outside your bank It’s often an intuitive first step to consult your bank about what kind of mortgage it could offer you, but that doesn’t mean that your search for financing should end there. Look into credit unions as well, because they offer lower rates for almost every kind of service when compared to commercial banks. You could also turn to a mortgage company to inquire about their programs; just beware brokers who will try to tack on extra fees to your lending contract. Before you meet with representatives from these institutions, arm yourself with valuable information about mortgage rates.
Use your power of persuasion Once you’ve found the right home and the right mortgage, you may consider your work done, but it’s not. You can work with both the seller and your lender to reduce or eliminate certain fees. The seller, for example, may be willing to pay points on your mortgage instead of accepting an offer below asking price. This kind of arrangement lowers your interest ensuring that you save money on your home’s total cost while putting more money back into the seller’s pocket. Ask for a detailed list of fees from your mortgage lender; you may catch some fees that you can persuade him or her to reduce or drop altogether.


Post a Comment