Your mortgage is likely the largest financial investment you will ever take out in your life. That’s why it’s best to look for ways to save costs wherever possible. If you play your cards right, you can save up to hundreds of dollars every month. Here are some great tips on how to save on your mortgage:
Make Bigger Down Payments
Spending time saving on a bigger down payment can be worthwhile. Naturally, if you borrow less money, your repayment obligations will be reduced accordingly. This frees up money that may be put toward other priorities or put toward a mortgage that is shorter in duration and therefore possibly more cost-effective.
Head over to our mortgage calculator here to see how much your mortgage can possibly cost you.
A mortgage refinancing is the process of getting a new loan (with a new principal and interest rate) to pay off your current mortgage.
One benefit of refinancing is that you can secure more attractive loan conditions than those already in place. Your current mortgage payment can be reduced if you refinance into a new mortgage with a lower interest rate.
Refinancing into a smaller loan (with the same or lower interest rate) after making principal payments might also reduce your monthly payments if you’ve paid down the loan significantly.
Short Term Loans
The 30-year fixed-rate mortgage is so common because it often has cheaper monthly payments compared to loan terms. However, if you can qualify for a mortgage with a 15-year term or less, you’ll save a ton of money and be done with it much sooner.
Let’s say you borrow $180,000 for a mortgage at 3.77% interest. With this, you’ll spend nearly $120,000-125,000 on interest alone overall. If you opt for the 15-year mortgage, which normally has a lower interest rate and larger monthly payments, you will spend only $40,000 on interest. That’s a cost-cutting measure of roughly $80,000.
It is impossible to foresee if mortgage rates will go up or down while house hunting. Therefore, a pre-approved mortgage might shield you from rising interest rates throughout the process. A pre-approval for a mortgage will allow you to get a fixed interest rate for a period of time.
Getting pre-approved can also help you determine how much you can spend on your first home. Secure a pre-approval today by clicking here!
Get Expert Advice
How much should I pay for a mortgage? Can I afford to buy a home? What if I have bruised credit? What if I’m on a budget? There are so many complexities and questions that come with getting a mortgage — especially if it’s your first time.
That is why working with mortgage brokers in Canada is always a good idea. A licensed mortgage broker is your best resource for understanding all the advantages and upsides of today’s financing options.
Mortgage brokers like Premiere Mortgage Center will get to know your financial background and your lifestyle goals and match it with your mortgage needs.
The Price Is Right With Premiere Mortgage Centre
The professionals at Premiere Mortgage Center take the time to learn about what you want to accomplish with your mortgage. We take into account your financial history and tailor the mortgage to your specific needs. Rest assured that with us, you’ll get the most out of your investment. Reach out to us today to get the best mortgage rates, click here.