With the current trend in the housing market, they say that now is the right time to buy, if you are planning to, anyway. With that, we are aware of the bloated mortgage costs that’s why prospective buyers should start by shopping for the best mortgage and compare interest rates.
That said, here are some ways to cut costs:
- Shop for mortgages at several local banks, credit union if you are a member, and online lenders that are serving your area.
- Know the loan’s contract interest rate; the annual percentage rate, which includes closing costs and express them as part of an overall interest rate; and a good faith estimate of closing costs. The loan with the lowest calculated APR is the least costly option.
- Pay closing costs up front instead of wrapping them into the mortgage. If you don’t, you’ll pay interest on that few thousand dollars for the life of the loan.