Most homeowners are concerned with having the lowest monthly payment for their mortgages. To get the best deal for your mortgage however, you need to concern your self with all fees, including closing costs. By comparison shopping all fees, you will find the best mortgage and save yourself a lot of money and future headaches.
Shop for the Best Mortgage
If you are in the process of taking out a new mortgage or refinancing your current mortgage it pays to compare offers from multiple lenders. Mortgage offers vary significantly from one lender to the next. If you have less than desirable credit it is extremely important to shop from as many lenders as humanly possible. This is important not only to find the best interest rate, but to avoid predatory lenders that take advantage of home owners with poor credit ratings.
Compare Fees
You will need to pay close attention to the fees and points mortgage lenders require. Question any fees that seem out of line with other offers you are considering. If you find offers that require you to purchase insurance you do not need, require periodic refinancing, or have large balloon payments, you should avoid these lenders altogether.
Consider Making Biweekly Payments
If paying down your mortgage quickly and saving money on interest is your goal, consider making biweekly mortgage payments. This means paying half of your monthly mortgage payment every two weeks. If you do this for an entire year, you will make one extra payment every year entirely to equity. Over the course of ten years this can make a significant difference in your outstanding loan balance. To learn more about saving money on your mortgage while avoiding common mortgage mistakes register for our free mortgage guidebook: Five Things You Need to Know Before Refinancing Your Mortgage.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
