|
|
|
|
|
|
|
|
|
|
|
Refinance @ LOWEST Rates!!
|
|
|
Find below some tips on how you can reduce your mortgage payments. However, be careful to look deeper into the advice. Each has its own advantages and
disadvantages and will be suitable for certain situations only.
-
Have at least 20% down payment ready. This will ensure that you not have to pay PMI (private mortgage insurance).
-
If you cannot put a down payment of 20% or more, your monthly payment will probably include PMI (private mortgage insurance). In such a case, you can
break your loan into 80% fixed mortgage and the remaining into home equity loan loan. In this case you will not have to pay PMI.
-
Make an extra payment every year towards the loan principal, if possible.
-
If you expect to improve your financial situation soon, but would like to buy the home NOW, choose ARM loans which have lower mortgage interest rates.
And plan to refinance later. But watchout - you loose money whenever you refinance.
-
You can also choose interest only loan. The value of your home usually goes up more than the unpaid loan and hence it means an equity increase even when
the real estate would have been unaffordable if you had choosen a interest + principal loan. But watchout - in certain situations the equity may become diminished and
you might find yourself in a situation where the equity has diminished too low that it is not worth anymore.
-
Buy paying upfront "points" you can reduce your mortgage payments. You may want to weigh the advantages and disadvantages for your unique situation before you make this decision.
Be sure to check the Mortgage Shopping Worklist.
|
|
|
|