12 ways to save on your mortgage

Budget101 Discussion List Archives Budget101 Discussion List 12 ways to save on your mortgage

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      1. Get pre-approved for your mortgage, rather than just pre-qualified.

      It strengthens your bargaining position with sellers and their real

      estate agents.

      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

      cancel PMI.

      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

      quickly.

      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.

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Budget101 Discussion List Archives Budget101 Discussion List 12 ways to save on your mortgage