| You are already probably paying hundreds of | | | | Make payments more frequently. If you get paid on a |
| thousands of dollars for a home in California or more. | | | | biweekly basis, consider making biweekly home |
| So you certainly do not want to spend unnecessary | | | | mortgage payments. Each time you make an extra |
| additional money on closing costs, lender fees, higher | | | | payment, even if it is just one, it shortens the life of |
| interest rates, and other hidden costs. Ways to save | | | | your loan. By making two payments a month instead |
| on your home mortgage are not immediately obvious, | | | | of one, it takes you a little over 23 years to repay a |
| especially when you are not familiar with all the ways | | | | 30 year fixed rate mortgage. Any extra payments |
| lenders can tack on additional costs to the total | | | | you make toward your home mortgage go toward |
| amount of the mortgage. Use these tips for ways to | | | | the principal of the loan. So, the balance of the principal, |
| save money on your home mortgage. | | | | rather than the interest, is reduced by any extra |
| Make sure you are choosing the right type of home | | | | money you pay. When you do this, you can reduce |
| mortgage for your situation. When it comes to the total | | | | your home mortgage payment dramatically as stated |
| cost over the duration of the loan, the 30 year fixed | | | | above. Before you make extra payments, make sure |
| rate home mortgage is the most expensive, with one | | | | your agreement did not include a charge for early |
| exception. If you plan to live in your home for the | | | | repayment. |
| length of the loan, it is the best home mortgage. As | | | | Try to avoid paying private mortgage insurance. You |
| you shop for mortgages, take into account how long | | | | are required to pay PMI when you make a down |
| you plan to be in your home. Let that length of time | | | | payment less than 20 percent of the amount of the |
| determine the type of loan you get. As a general rule | | | | loan. The amount you pay in PMI could be used to |
| of thumb for shorter periods of time, choose an | | | | make extra home mortgage payments or invested in |
| adjustable rate loan, and for longer ones choose a | | | | a high yield investment account. If you are already |
| fixed rate. | | | | paying PMI, watch your equity closely and drop the |
| Try to negotiate with your lender. There is absolutely | | | | insurance once you have 20 percent equity in your |
| nothing wrong with asking your lender for a better | | | | home. |
| interest rate or to eliminate some of the fees | | | | There is no sense in paying extra money in interest |
| associated with your home loan. Consider the fees for | | | | and other home mortgage costs unless you absolutely |
| which the lender makes no money: appraisal, inspection | | | | must. By using just one or two of these methods you |
| fees, processing fee, title fees, private mortgage | | | | can save thousands or even tens of thousands of |
| insurance, and credit report fees. Anything outside of | | | | dollars in the total cost of your mortgage. When you |
| these fees is fair game to be negotiated with the | | | | take steps to reduce your costs, make sure you are |
| lender. Do not hesitate to ask your lender to take | | | | not decreasing one cost and increasing another |
| away some of the unnecessary fees. | | | | simultaneously. |