Saving money on your mortgage can seem like a daunting task, but there are a few simple strategies that you can use to lower your monthly payments and save thousands of dollars over the life of your loan.
Make extra payments: One of the simplest ways to save money on your mortgage is to make extra payments each month. By paying even a small amount extra each month, you can significantly reduce the interest you pay over the life of the loan.
Refinance: Refinancing your mortgage can help you save money by reducing your interest rate and lowering your monthly payments. You can also consider a shorter-term loan, which typically comes with lower interest rates but higher monthly payments.
Get a bi-weekly mortgage: Switching to a bi-weekly mortgage payment schedule can help you save money by reducing the amount of interest you pay over the life of the loan. With a bi-weekly mortgage, you make half of your monthly payment every two weeks, which can add up to one extra payment per year.
Make sure your credit score is high: A high credit score can qualify you for a lower interest rate, which can save you thousands of dollars over the life of your loan. Make sure to check your credit score and work on improving it before you apply for a mortgage.
Look for government programs: There are several government programs available that can help you save money on your mortgage. For example, the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) both offer programs that can help you qualify for a lower interest rate or a more affordable mortgage. Although this is not the best option for everyone.
By implementing these strategies, you can save thousands of dollars over the life of your mortgage and make your home more affordable. Remember to keep an open mind and explore all of your options to find the best deal for you.
Talk to an expert at Lending House