Buying a home is a great way to give yourself control over your housing costs and to eliminate the need to deal with rising costs of living. However, make sure the mortgage that you are agreeing to pay is realistic for your budget as it is a long-term investment that you are agreeing to.
One way to cut down your mortgage is to eliminate the need for a Private Mortgage Insurance, PMI. In order to do this you will need to put up a twenty percent down payment. Typically lenders will only agree to a minimum of eighty percent borrowed money, ten percent down payment, and ten percent private mortgage insurance. Private Mortgage Insurance will typically cost you about one percent of the total loan amount. By eliminating the need for PMI, you will decreased the excess you will repay on your loan.
Another way to lower your mortgage is to buy a less expensive home or consider downsizing. This will not only make it easier to come up with a twenty percent down payment, but will also lead to a lower monthly payment and less insurance on your mortgage since you would be borrowing less money. In addition, you will also save money on property taxes and insurance. It is important to note, that you can save a lot of money by researching what company has the cheapest rates.
Make extra payments on your mortgage when you can. By doing this, you will pay less interest in the long run. For example, if you make an extra payment of $1,000 and have an interest rate of 10%, you will pay $100 less a year for the duration of your loan. By making regular extra payments, you will pay off the loan sooner and with less interest which can save you a lot of money by the time that you make the final payment on the loan.
For all of your real estate needs, please contact the Hornburg Real Estate Group at Keller Williams Realty at DallasFtWorthHomeSearch.net or (817) 264-7087.