Tips For Saving Money On Your Mortgage

by Pam on July 20, 2012

Improve your Credit Score

Did you know that you can actually save money on your mortgage? Most people don’t realize this, however, it is true. The best way to save money on your mortgage is to first increase your credit score and improve your lending history. By doing this you will show the mortgage lender that you are a reputable borrower and that their money is safe with you. Now, that is the obvious answer as to how to save money, but there are a couple more ways.

Pay for Points

Another great way to save on your mortgage is to actually pay for points. When I say pay for points I am talking about giving the lender money in order for them to lower your interest rate. Yes, this is possible and it is not illegal either. The reason this works is because the lender gets the money that they need ahead of time and because of that they are willing to lower your interest rate on the loan. This is a great way to save money; however, if you don’t have any money then you won’t be able to pay for points. Just keep that in mind.

Make a Higher Down Payment

Another thing that you can do to save on your mortgage is to pay a higher down payment. Most lenders require something as a down payment and if you can pay more than they ask for, then you will get a much better deal. Some mortgage companies will give you a lower interest rate while others will just give you more favorable terms. Either way you go, all three of these tips will save you money on your next mortgage.\

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