Saving money is probably something that everybody wants to do, but often times when it comes to “how to save money on mortgages” people are stumped. The reason for this is that since mortgages are partially controlled by the government there are not always great savings programs or coupons. That being said, every situation is different and there ARE ways to save money on anything so below are our top 5 ways to save money on mortgages!
Top 5 Ways to Save Money on Mortgages
1. If you already have a mortgage consider refinancing to a lower interest rate. For example if you are above 5% you may be able to refinance to 4% or below (rates are constantly changing, call a mortgage professional for current rates and details) and save hundreds or even thousands of dollars per year.
2. Look into Free Grant Money– Depending on which state you live in, and when you are shopping there might be grants available for home buyers in your area. Currently (as of Dec, 2012) there is a MSHDA first time home buyer grant available to Michiganders for between $3,000 and $5,000. Grants are usually available on a first come first serve basis but it is always smart to ask your lender if any grants are available. 616-774-9160 for info.
3. Get the right loan– One thing that still surprises many buyers is that there are different types of mortgages. Every mortgage is different and by working with a lender you trust you can select the loan that is in the best interest of your pocket book. For instance some loans have zero down payment meaning you can save your money in the short term.
4. Save Money, Get Creative– Everybody seems to want a new house in the perfect neighborhood. Often times these houses are also top dollar. For some house payment savings consider bucking the trend and getting a fixer-upper but then using a 203k rehab loan to make the house perfect. The 203k lets you roll the cost of remodels into the mortgage. We sometimes call this the dream home loan.
5. Long Term Savings– Although this is pretty conventional wisdom, if you have the money consider reducing the term of your mortgage. This may give you a higher monthly payment but will reduce the total amount of interest you will pay throughout the life of your loan dramatically.
For questions about saving money on your mortgage call your local mortgage company at 616-774-9160.