Purchasing a home, let alone building a new home, is an exciting and major life event. However, whether the economy is strong or struggling, it is always wise to save as much as possible in your purchases. With an investment as large as a home, it is worth saving where you can! Here are some mortgage hacks to help you save as much as possible.
Start Planning Early
It is wise to start planning to purchase your home as soon as you are ready to think about it. We all have different milestones, and if the next one is buying a house, research, get advice, and prepare how you can as soon as possible. Work with a financial advisor who specializes in mortgages or a customizable home building company if you plan to build new. Prepare by determining the qualities of your dream home, improving your credit score, and saving up for a downpayment.
Consider Mortgage Buydowns
Mortgage buydowns are upfront payments that allow you to reduce your interest rate by percentages. You can read more about mortgage buydowns here.
Stay Within Your Maximum Budget
Your bank or financial advisor can tell you how much house you can afford. Once you know this much, determine what your dream house must-haves are and to what minimum mortgage that equates. Stay within the bounds of your budget; your mortgage is a sort of forced savings where you are paying down the principal amount of your loan and building equity.
Pay in Bi-Weekly Installments
If you divide your determined monthly mortgage payments in half and pay bi-weekly, you will end up paying off more of your mortgage than if you went with the monthly schedule.
Fuel Your Mortgage Payments with Your Tax Refund Money
When you buy a house, you do get a higher tax refund. What better way to use those funds than to put it directly into your mortgage payments or a down payment for your new home?
Fuel Your Mortgage Payments with Other Savings
You can also find savvy ways to renegotiate regular payments for other things, like Wi-Fi, auto insurance, cell phone payments, etc. Funnel those savings into your mortgage payments.
Refinance and Continue with the Original Monthly Payment
One popular way to make mortgage payments more affordable down the line is to refinance it. Your required monthly payments will be lower. You can decrease the interest rate and save money by refinancing and continuing to pay the higher, original monthly payment.
Ask for a Rate Adjustment Rather Than a Refinance
Alternatively, you can also ask for an interest rate adjustment. If you have a fixed rate and notice it has decreased in the current market, you can ask your lender to decrease it to that amount.
Let Ameri-Star Homes Build Your New Custom Home!
Ameri-Star Homes was built on the idea that a home is not complete until the homeowner is 100% satisfied. That’s right, completely satisfied homeowners. Whether you want a home built on one of our home sites or on your own land, count on the same high quality from Ameri-Star. We have set out to exceed all your expectations of integrity, affordability, and customer satisfaction. Build lasting memories for years to come with Ameri-Star Homes.