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Thread: 12 ways to save on your mortgage
03-04-2008, 01:57 PM #1KristinGuest
12 ways to save on your mortgage
1. Get pre-approved for your mortgage, rather than just pre-qualified.
It strengthens your bargaining position with sellers and their real
2.When rates are high, consider buying down your rate by coming up
with more money to finance the mortgage. Use our mortgage calculator
to check your real savings.
3.Ask about builder incentives to reduce loan costs.
4.Leave some breathing room in your budget. Consider a smaller
mortgage that won't tie up too much money -- not more than 28 percent
of your gross monthly income.
5.Biweekly mortgage payments save thousands of interest dollars and
shave years off a 30-year loan. Save even more by doing it yourself.
6.Cancel private mortgage insurance (PMI) once your mortgage reaches
an 80 percent loan-to-value.
7.If you know your home has greatly appreciated in value, get an
appraisal. Use your home's appreciated value to petition the lender to
8.Make extra mortgage payments, whether monthly, once a year or on
some other schedule, to get to 80 percent LTV -- and cancel PMI more
9.If you live in an area with increasing home prices, buy a rental
property. Live in it for two years to avoid capital gains when you sell.
10.Be house-wise. Sell the big house, or don't buy more house than you
need. Get an affordable townhouse or smaller home.
11.Rent out a room in your home if you have more space than you need.
12.Refinance to take advantage of exceptionally low interest rates.