Cutting The Cost Of Your Mortgage

Buying a home is one of the biggest, if not the biggest purchase we make in our life time. That being said our housing costs are also one of the biggests expenses we pay monthly. However, there are plenty of ways to reduce this cost.

1. Shop around before you buy- It is very important to shop around for a mortgage. All companies are different and they will all give you different pricing and interest rates. Some of the best deals are found at smaller companies.

2. Use a broker- A mortgage broker is always a good person to contact. They can lead you in the right direction to find the perfect lender for you and your scenario.

3. Save for a bigger down payment- Your interest rate is determined on your loan to value ratio. This means how big is the loan in comparison to the value of the home. The more you put down the less interest they will charge you.

4. Decide what type of rate you want- When deciding what type of mortgage rate you want make sure you know the difference. With a fixed rate, you know exactly what your payments will be for a period of time. After that point in time your payments are more than likely to increase. The other type of loan you can have is a variable.

5. Don't add the fee to the mortgage balance. Most mortgages charge a product fee. If you are using a mortgage company that does so, do not add it to the mortgage balance. If you do so you will end up having to pay interest on that fee. If you can pay for it, do so upfront.

6. Adjust your term- If you want to change the term of your mortgage you can do so. Shortening the term will in fact save you money over time. You will have bigger payment upfront but pay less long term.

Here are some different ways to cut your mortgage costs. If you are anyone you know has any questions regarding mortgages or needs hel

p buying or selling a home, I would love to help. Please give me a call at 317-650-5898 or email me at ermusleh@gmail.com.

Thanks,

Elaina Musleh