All the Ways to Save on Your Mortgage
As you may have heard, mortgage rates are going up daily, making it nearly difficult for you to afford mortgage instalments. Here are a few ways to still help you save money on the mortgage. Follow these tips, which will help you save on your mortgage.
Work on Your Credit Score
If your credit score is not good, it makes it difficult for you to get approval for a mortgage, or even if any lenders are willing to offer you a mortgage with a bad credit score, they will charge you more interest rate than others. If you’re still working on trying to raise your credit score to a more creditworthy level, don’t rush into purchasing a home. Instead, wait until your credit score improves before applying for a loan with a lower interest rate. We’ve put together a great article on why having a good credit score will impact your mortgage experience.
Offer a Larger Down Payment
You borrow a more significant amount when offering a smaller down payment on a home. You will get a lower interest rate if you keep your borrowing to a minimum. A sizeable down payment on your home lowers your monthly costs. Most of the mortgages are 30-year mortgages, but smaller ones as short as 15 years and larger ones as long as 40 years are available. On the other hand, putting down a larger down payment will result in a lower monthly payment, regardless of the length of your mortgage. This can protect you if your liquid assets due to job loss or other unforeseen circumstances.
Go for a Shorter Mortgage
Going for a 15-year mortgage over a 30-year mortgage may be the best option for some homeowners, but it depends on your circumstances. If you want to go the shorter repayment route, make sure you carefully evaluate your finances first. This way, you can ensure that you can afford the higher monthly cost. One thing to think about is your current job situation. If you have a steady job or business and don’t expect your income to drop significantly, a 15-year mortgage may be the best option. You will save a lot of money by choosing a short-term mortgage, paying a lower interest rate than a long-term mortgage. To read more about mortgage types and terms, click here.
If your credit score is perfect and interest rates are dropped, you can easily save thousands of dollars by refinancing your mortgage. Refinancing allows you to pay off your current loan and obtain a new mortgage with better terms; it may be a good option if you intend to stay in your home for a long time. However, if you want to sell your home and purchase a new one soon, postpone refinancing to ensure you get better terms on your next mortgage loan.
Get Your Mortgage Expert Advice
Obtaining advice from an expert can be the best option. Just visit Leap Financial and contact our experts to discuss your mortgage options. Our experts can help you to get the most reasonable and affordable mortgage.