One of the best ways to save money on your mortgage is the most obvious; get the best rate.Â While that may be one of those things that make you say â€˜well duhâ€™ it actually is something that most people overlook and few people think they have any control over.Â The simple fact is that there are quite a few strategies for saving money on your mortgage if you take a little bit of time to do some research.
So letâ€™s do that, and see if we canâ€™t find a few strategies for you. Read on below for some tips that should help you get that mortgage payment lowered.
If possible, assume an existing mortgage.Â If the home youâ€™re going to buy has a lower interest rate why not take it over?Â You can avoid a lot of bank fees this way too, although the loan must obviously be transferrable and you will need to be able to come up with the difference between what the existing mortgage is and what the price of the house is.
If you can arrange for seller financing you can save an enormous amount of money, especially if you can arrange a better interest rate. This will also help you circumvent the various bank fees that a mortgage entails and will enable you to skip having to buy mortgage insurance.Â This is easier if you look for a home that hasnâ€™t been able to sell for an extended period of time or a seller that wants a steady stream of income.
Depending on the amount you are able to pay down and pay per month, you may consider taking out a shorter loan, say 15 years instead of 30. Also, the quicker you pay down the loan the quicker you pay off the interest and, obviously, the less youâ€™ll pay.
Finally, keep in mind that mortgage companies know that there is completion out there, especially if you have great credit. Make them work for your business by giving you a great rate, or else look for another that will.