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How To Save Money On Your Mortgage

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  • LendingTree Editorial Staff
    Message 1 of 2 , Apr 1, 2006
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      Please consider this free-reprint article written by:
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      Article Title: How To Save Money On Your Mortgage
      Author: LendingTree Editorial Staff
      Word Count: 499
      Article URL: http://www.isnare.com/?aid=43812&ca=Finances
      Format: 64cpl
      Author's Email Address: bridget.smith[at]lendingtree.com
      (replace [at] with @)

      Easy Publish Tool: http://www.isnare.com/html.php?aid=43812

      ================== ARTICLE START ==================
      Understandably, when most home buyers look for a mortgage,
      their top priority is to get the lowest monthly payment. But
      it�s a better idea to look at how much it�s going to cost you
      over the long term, in both interest payments and fees. By
      looking at these costs, you can save a significant amount over
      the years.

      Even if you already have a mortgage, there are still a number
      of strategies you can use to reduce the total amount of
      interest you�ll pay. Most of these accelerate the speed with
      which you repay the loan, and that reduces your long-term
      interest costs.

      Here are some ways to reduce the long-term cost of your
      mortgage:

      Compare offers
      It always pays to get offers from several lenders when you�re
      shopping for a mortgage. Offers can vary substantially.
      Especially if your credit is considered sub-prime, you
      shouldn�t accept a high-interest rate mortgage without looking
      for a better offer.

      Consider fees
      One factor that increases the cost of your mortgage is the fees
      or points lenders add onto the deal. Look at these carefully,
      and don�t be reluctant to challenge fees that seem too high.
      Compare offers using the annual percentage rate (APR), which
      includes both the interest rate and the fees.

      Shorten the term
      If you intend to be in the house for some time, you can lower
      your interest costs substantially by choosing a shorter
      mortgage term. This will increase your monthly payment but
      enable you to save significantly over the life of the loan. It
      may also enable you to get a reduced rate on the mortgage. For
      example, you can save $66,364 over the life of a $100,000
      mortgage by choosing a 15-year term at 5.75 percent versus a
      30-year term at 6 percent.

      Pay bi-weekly
      Consider paying your mortgage every two weeks instead of
      monthly. The difference is hardly noticeable, but this can cut
      the amount of interest you pay since your principal decreases
      more steadily. And, since there are 26 two-week periods in the
      year, you actually make an extra monthly payment each year,
      further shrinking the principal.

      Cut the PMI
      If your down payment is less than 20 percent of the house
      price, you may be required to take out private mortgage
      insurance (PMI). However, once your mortgage principal
      decreases to 80 percent of the home�s value, you can petition
      your lender to cancel the insurance. This may happen after
      you�ve repaid some of the principal, or if the home�s value
      rises quickly. You may have to have the house reappraised, but
      the savings should make the expense worthwhile.

      For more ways to save money on your mortgage, visit
      http://www.lendingtree.com/cec/yourhome/yourmortgage/how-to-save-money-on-your-mortgage.asp


      About The Author: The editorial staff at LendingTree is
      committed to helping consumers become smarter borrowers. Visit
      http://www.lendingtree.com/cec for more information and tips on
      buying, selling, and financing a home. Copyright 1998-2006,
      LendingTree, LLC.

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    • Joseph Kenny
      Message 2 of 2 , Nov 29, 2006
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        Please consider this free-reprint article written by:
        Joseph Kenny

        ==================
        IMPORTANT - Publication/Reprint Terms

        - You have permission to publish this article electronically in
        free-only publications such as a website or an ezine as long as
        the bylines are included.

        - You are not allowed to use this article for commercial
        purposes. The article should only be reprinted in a publicly
        accessible website and not in a members-only commercial site.

        - You are not allowed to post/reprint this article in any
        sites/publications that contains or supports hate, violence,
        porn and warez or any indecent and illegal sites/publications.

        - You are not allowed to use this article in UCE (Unsolicited
        Commercial Email) or SPAM. This article MUST be distributed in
        an opt-in email list only.

        - If you distribute this article in an ezine or newsletter, we
        ask that you send a copy of the newsletter or ezine that
        contains the article to info[at]insure121.com (replace [at]
        with @)

        - If you post this article in a website/forum/blog, ALL links
        MUST be set to hyperlinks and we ask that you send a copy of
        the URL where the article is posted to info[at]insure121.com
        (replace [at] with @)

        - We request that you ask permission from the author if you
        want to publish this article in print.

        The role of iSnare.com is only to distribute this article as
        part of its Article Distribution feature (
        http://www.isnare.com/distribution.php ). iSnare.com does NOT
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        this publication/reprint terms. If you do not agree to any of
        these terms, please do not reprint or publish this article.
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        Article Title: How To Save Money On Your Mortgage
        Author: Joseph Kenny
        Word Count: 691
        Article URL: http://www.isnare.com/?aid=105117&ca=Finances
        Format: 64cpl
        Author's Email Address: info[at]insure121.com (replace [at]
        with @)

        Easy Publish Tool: http://www.isnare.com/html.php?aid=105117

        ================== ARTICLE START ==================
        For most people, purchasing a home is one of the biggest
        investments they will ever make. Buying a house or apartment
        usually involves a lot of money, especially if it is mortgaged.
        The key to saving money on your mortgage lies in getting the
        best available one for yourself. Although that may sound like
        an obvious solution, essentially it is about utilizing
        available avenues that will help you save quite a lot of money,
        especially if you make your monthly payments on time. While
        everyone wants to pay off their mortgage as soon as possible,
        it requires considerable amount of planning to transform wishes
        into reality.

        Ways to save money on your mortgage:

        There are several methods to help you save money on your
        mortgage:

        Seller financing: This allows you to pay the amount directly to
        the seller over a period of time, rather than borrowing money
        and paying all of it at once. It enables you to negotiate a
        better rate of interest, and avoid the numerous administrative
        fees charged by lending institutions. Moreover, it saves you
        from the frightful mortgage insurance. It also provides you
        with a secure source of income and returns, without having to
        pay capital gains tax. The seller holds the house as a
        collateral that can be taken back, if the buyer defaults.

        Debt Consolidation: When you reimburse your mortgage, you often
        pay off a number of unsecured debts such as credit cards, charge
        cards, personal loans and the like. The rates of interest on
        home loans are relatively lower than those on unsecured debts.
        Therefore, debt consolidation would help you to bring down your
        monthly payments. In other words, you would be paying an
        interest rate that applies to home loans on all your unsecured
        debts.

        Bi-weekly payments: This enables you to make your mortgage
        payments at a faster rate. You do this by paying half of the
        monthly payments every two weeks. Hence, you will have paid 13
        monthly payments by the end of the year, instead of 12. Thus,
        by using this method, you could save a lot of money on the
        interest of your mortgage.

        Refinancing: It is one of the best ways to save money on your
        mortgage. It not only helps you reduce the term of the loan,
        but saves a lot on the interest, and even lets you get back
        your home sooner. You should opt for getting a loan at a fixed
        rate, which would protect you from having to make very high
        monthly payments because of increased interest rates, provided
        you have an adjustable rate of mortgage. Refinancing would
        prove to be the best available option to get a better mortgage,
        especially if the value of your home has increased since you
        bought it.

        Pay off the interest as soon as possible: It might prove to be
        advantageous to pay off the interest or principal,
        comparatively sooner than what you would have, in the normal
        course. This depends upon the mortgage you have, your financial
        strength, and the rate of interest.

        Fixed mortgage: This is the safest way to save money on your
        mortgage. With a fixed rate of interest, you will always know
        the status of your monthly payment. Hence, there would be no
        scope for uncertainties, and even if the interest rate drops,
        you can easily refinance to a lower rate of mortgage.

        Since paying off the mortgage is one of the necessities of life
        for most people, you need to opt for ways that ease the burden.
        It is important not to take the published interest rates of a
        mortgage lender as the final word. Gather information on all
        the available rates of interest, and various mortgage features,
        from lenders in your area. Assess the pros and cons of each, and
        decide on the one that meets your requirements. You should be
        able to negotiate the interest rates effectively, and not
        hesitate asking for better terms. Therefore, keeping the
        above-mentioned methods in mind, you will be able to save a
        considerable amount of money on your mortgage.


        About The Author: Joe Kenny writes for the UK personal finance
        sites http://www.ukpersonalloanstore.co.uk and also
        http://www.cardguide.co.uk

        Please use the HTML version of this article at:
        http://www.isnare.com/html.php?aid=105117
        ================== ARTICLE END ==================

        For more free-reprint articles by Joseph Kenny please visit:
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