Reduce Your Mortgage Payments with These Techniques

variable mortgage ratesOwning your own home is a dream for most people, but it’s usually something you achieve in many years. Learn how to shorten that period by lowering your rate with these tricks:

Strengthen your position

Mortgage brokers in Salt Lake City will make sure they have a copy of your credit score so make sure you have the same information they do. Request yours and see how you stand financially. A good score means that you can negotiate a low rate from the lenders.

Be consistent

Always give lenders the same information when you submit your application. Failing to do so will make it difficult for you to estimate which provider has the best rates on offer correctly.

Your credit score, the use of the home, and the amount of the down payment are some of the most important factors to consider.

Consider taxes and insurance

The loan could include taxes and insurance payments, or it could be excluded from the total amount. This is a decision you have to make before applying for the loan. The lender will ask about it beforehand. If unsure, ask them how this would affect your payments.

Pay more each month

This technique works well if your mortgage loan has a clause accepting surplus payment each month. The clause should allow the surplus payment to be subtracted from the principal. This way, you can pay off the principal faster and therefore pay lower rates each month as well.

Look at the fees

Comparison shopping is good, but the rates alone shouldn’t convince you. Ask about any fees you have to pay on top of the basic loan and the rates. Your total cash out per month should be the primary consideration and not just the rate.

A good mortgage rate should be chosen together with the terms and conditions of the loan itself. Look for clauses that let you pay in advance or in a lump sum.