Your mortgage payment likely makes up a large portion of your monthly expenses. Below, we outline how homeowners and homebuyers alike can lower their mortgage costs.
Applying for a mortgage or a refinance can be expensive. However, some lenders may be willing to waive fees for processing. Before applying for a loan, be sure to shop around for the lowest application rate from available lenders. (Note: in some cases, lenders won't offer to refund this fee if the loan is not approved.)
If you're a first-time buyer, be sure to compare home prices and anticipate what your monthly mortgage payment would be for each home. Understanding your price range will help you to stay within budget as you search online or in person. Remember too, that the mortgage payment is only one of many homeownership expenses — property taxes, homeowners association fees and insurance can also add up.
It is always a good idea to compare rates from multiple potential lenders when buying or refinancing. Lenders offer different fees and can also offer different rates, depending on a variety of factors. If possible, compare rates on the same day, as they are subject to change on a day-to-day basis.
When buying or refinancing, your credit score and history will be important to lenders, so keeping track of your financial situation in the months leading up to applying for a loan or refinance is crucial.
Learn how to raise your credit score in the months leading up to your mortgage application.