How to save on your mortgage

When it comes to mortgages, do you want to know how you can save money? Then, read on!

09:41 01 August 2013

Mortgage loan is undoubtedly one of the biggest debts that anybody can take out. Usually, it takes an individual 25-30 years to pay this loan. However, there are some things that you can do to save money.

 

• Save for a bigger down payment. If you’re not in a rush to buy a house, I would suggest that you save for bigger down payment. The more you pay upfront, the lower interest rate you’re going to get.

Also, this will reduce the loan term significantly. If you pay 40per cent down payment, you are also more likely to qualify for the lowest interest rate available in the market.

• Make overpayments. Whenever you find yourself with extra money, make overpayments. The money that you paid will be deducted directly to the money you borrowed.

As a result, you’ll be able to reduce the interest or you’ll be able to shorten the loan term.

• Refinance your mortgage. Do some research to determine if there are mortgages that have lower interest rates than what you are currently paying for. There is always the option of looking into having your mortgage refinanced.