Lower your Mortgage Debt With These Tips
Saving money on your Mortgage loans where ever you can helps you on the long road to becoming debt free. Take not of these tips below:
Although your monthly payment may be higher, you can save tens of thousands of Dollars in interest charges by shopping for the shortest-term mortgage you can afford. For each $100,000 you borrow at a 10% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed rate mortgage.
You can save thousands of Dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate mortgage, just lowering the APR from 11% to 9.5% can save you more than $15,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $10,000.
Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees. If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.
Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of Dollars a month, so ask the lender what the highest possible monthly payment might be.
Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. Calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
We have touched on this as a means of debt consolidation in a previous post but take note of these points again.
Be cautious in taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home. (Equity is the cash you would have if you sold your house and paid off your mortgage loans.) If you are unable to make payments on home equity loans, you could lose your home.
Compare home equity loans offered by at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments.
You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker’s firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are showing you a property that they have listed.
Do not purchase any house until it has been examined by a home inspector that you selected.Always make sure that the realtor you are deling with is completely reputable……
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