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11 suggestions for saving $$ on your mortgage

02 Aug

Usually the mortgage payment is the largest monthly expense, especially in California. After we receive the loan and begin making payments, we forget there are opportunities to cut costs. With a little effort we can all reduce our expenses.  This is the first in a series on how to reduce your mortgage costs.

Mortgage tips to consider:

  1. Refinancing when current rates are lower than your rate by .50% or more.
  2. Refinance from a 30 year loan into a 15 year fixed, thereby saving money on the total amount paid on your mortgage.
  3. Increase your credit score prior to refinancing or applying for a home loan, thereby qualifying for the best or lowest rate and fees possible.
  4. Compare mortgage lenders rates and fees when applying for a home loan.  See my tips on a future blog.
  5. Pay additional money towards principal balance, thereby decreasing the total loan balance and subsequent date when balance is paid-in-full.
  6. Pay 1/2 payment 15 days before it is due and the remainder on the due date, which decreases the overall balance paid over time.
  7. Drop monthly mortgage insurance coverage(MI or PMI), if it was originally required on your loan.
  8. Fight property assessment valuation by the state. (This saves money on taxes)
  9. Shop for lower priced home owners insurance.
  10. Recast your mortgage payment.
  11. Loan modification.

Fees and guidelines vary by lender, program, loan amount, loan-to-value(LTV), credit score, state, fixed rate loan versus adjustable, etc.

 

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