Easy Ways of Saving Your Money
Looking for ways to save money on what may be the biggest financial transaction of your life? Here's a little advice for dealing with mortgages.
You might "assume" the existing mortgage on the house you're buying, if there is one. This is a good deal if the existing mortgage is at a lower rate than prevailing interest rates. To do this, you'll need to make sure the existing mortgage is "assumable," or transferable. And you'll have to cough up whatever difference there is between the purchase price and the outstanding debt. You might do this by tapping your nest egg, if it's large enough, or by taking out a second mortgage. For more information about this loan. Please See Assumable Loan product from this website. Want to talk to a live Loan Officer? See Contact us for contact information.
Another strategy is seller financing. Here, you make your monthly payments to the seller, not to an institutional lender. The advantage is that you can often arrange a lower interest rate -- especially if the seller has had trouble selling -- and you avoid the many costly administrative fees involved with institutions. (If the seller has had trouble selling, though, find out why!) In addition, you avoid private mortgage insurance. This most applicable alternative way of financing during Buyer’s market. For more information, please see Seller Financing/Seller Carry Loan product from this website.
Why would a seller take on this kind of risk? It's actually not that risky. The house is the collateral. Default on the loan, and the seller keeps the house -- just as a bank would. Sellers might also appreciate getting regular checks from you over time, rather than a lump-sum payment -- it'll be an additional income stream. And, depending on the seller's circumstances, this arrangement might also save him or her some capital gains tax. One caveat is that sellers typically will want a shorter term than the traditional 30-year mortgage. If you are first time buyer, have average credit and have no cash for downpayment, this is your best time to negotiate for this type of transaction. So, call us today! Please see Contact us for contact information. Live conversation with our Loan Officer is free of charge and no obligation to do business with us.
You might also save some money by playing with points and other elements of the mortgage. Maybe pay more discount points and get a valuable lower rate. Perhaps consider a 15-year mortgage instead of a 30-year one. (Of course, if you'd rather pay less each month with a 30-year mortgage and invest the rest in something like stocks, it could be better than a shorter-term mortgage -- especially if your interest rate is low.) You can use our Mortgage Tools to know about picking the right program according to your financial goals. Our Mortgage Tool allows you to consider a program that fits your needs. This will tell you that getting a 30 year fixed program is not always the best deal, click Mortgage Tools and you’ll see how it works.
It's also effective to pay off your mortgage sooner than you're scheduled to. The more you pay, the less you owe. And the less you owe, the less interest you'll pay. You can either pay extra principal payment per month. The other way is to enroll on a bi-weekly plan where you split your usual mortgage payment into two. For example, if your regular monthly payment is $2,000 payable every 15th of each month, instead of paying the full $2,000 a month, you would pay $1,000 every 2 weeks. You can either enroll with a company that automatically debits your bank account or you can do it yourself. If you are interested in getting a personal advice from our Loan Officer, Contact us anytime and we will show you the different ways to save money on your mortgage. Our advice is free of charge and no obligation to do business with us.
Finally, remember that mortgage lenders want your business and will usually compete to get it. Don't be afraid to negotiate. Let one know what another is offering you. Don't assume that published rates are final. If your credit record is good, you'll be in a particularly strong position to negotiate. Knocking a quarter percent off a published interest rate is a reasonable goal. Since we are broker and not a direct lender, we have hundreds of lenders available to compete for the best rates. Our Loan Officers are your perfect negotiator since they know the ins and outs of this business. Contact us anytime by phone or by email. You can also post your questions to our website and will be contacting you within 24 hours.