How to save money on your mortgage
With all of that in mind, there are some smart things you can do to make your own mortgage as affordable as possible.
- Shop around — It’s unfortunate how many people simply accept the first mortgage they apply for. Sure, it takes time to apply for quotes through different lenders, but even a seemingly tiny variation in interest rates can mean thousands of dollars in savings over the life of the loan. As long as all of your applications take place within a “shopping period” of 14 days, your credit score won’t be adversely affected.
- Consider a 15-year mortgage — If you can afford it, a 15-year mortgage typically comes with a significantly lower interest rate, which combined with a shorter amortization period can produce big-time savings.
- Save for a bigger down payment — You can get a mortgage with as little as 3% down, but doing so will result in a higher monthly payment, as well as mortgage insurance tacked on to your payments. By waiting until you have a little more cash on hand, you could make your financial life significantly easier for the next 15 or 30 years.
- Work on your credit — As we’ve seen, a small improvement in your credit score can translate into thousands of dollars in interest savings. Here are some tips to help you get started.
This isn’t an exhaustive list, but it’s a good start. And now that you know these national averages, you’ll have a better idea of what to expect when you go shopping.
The $15,834 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.