3 Ways to Save on Your Mortgage
The mortgage crisis of 2006 sent many homeowners for a loop, and many of those homeowners are still struggling with their mortgages and property values. The good news is that it seems like the real estate market is finally recovering. Sure, it has been a slow recovery, but at least it looks like it is bouncing back and will continue to do so, barring unforeseen circumstances.
According to the RNC, 133 or 152 metropolitan real estate markets have experienced an average growth of about 5-percent in their real estate markets- which bodes well for most homeowners and property owners. Because of the problems associated with the market, mortgages have become increasingly more difficult to manage.
But, there are best ways to save money on your mortgageand can save on your mortgage- some simpler than others, but all of them good ideas to help get you on the right track and take advantage of the real estate growth that has happened over the last two years or so. Here is a list of some easy ways in which you can save on your mortgage:
#1 Way to Save on Your Mortgage: Seek Pre-approval
There are a variety of options you have at your fingertips that can help you get a good rate on your mortgage and save you money in the process. One of the most important steps you can take is to seek out pre-approval for mortgage, rather than just seeking pre-qualification.
Most people tend to make this simple mistake in the process and thus end up losing money that could have been easily saved if they just decided to be pre-approved for their mortgage instead of taking the easy way out and doing the bare minimum with pre-qualified status on the mortgage.
#2 Way to Save on Your Mortgage: Find Out About Builder Incentives
Many mortgage plans offer certain builder incentives that can end up saving you quite a nice chunk of change on your overall mortgage costs. The thing about builder incentives is that you may not even know you have those options unless you ask first.
So, when negotiating a mortgage plan and rates, make sure to ask about builder incentives up front before signing anything. This way, you can end up saving money on your mortgage and potentially increasing your property value in the process.
#3 Way to Save on Your Mortgage: Pay on a Bi-weekly Basis
By doing bi-weekly payments on your mortgage you can end up saving a lot of money that would have otherwise gone to interest along. Most people do their mortgage payments on a monthly basis, which adds up in the long run through interest rates.
Bobby is a freelance writer for a host of web sites, newspapers, magazines and blogs. His specialty lies in local real estate markets and how-to guides when buying a new home, or taking out a second mortgage. Remember: second mortgage rates are often higher than the initial loan.