hen it comes to buying a interest rate by taking advantage
home, your mortgage of an improved credit history.
matters just as much as If your credit rating was low
the cost of your home. Interest when you first acquired your
might seem like a small percent, loan, you may have a high
but when compounded over thirty interest rate. If you’ve been
years, it can literally double paying your bills on time, your
the amount you actually pay. If credit may have improved, in
you want to lower your payments which case you might qualify for
and pay less for your house, you a lower rate. There are many
should consider the many ways you credit repair companies that can
can lower your interest payments help you improve your credit.
by refinancing. Beware of credit consolidation
companies, which actually can
Taking advantage of a changing further damage your credit!
housing market is one of the
easiest ways to lower your If you have two loans, a first
interest payments on your lien and a second lien on your
mortgage. If you have a fixed home, you may want to consider
interest rate and interest rates consolidating those two liens
are dropping, you can refinance into one. Many people get equity
to an adjustable rate or a lower lines on their homes, but don’t
fixed rate mortgage. If rates realize that the equity line is
are rising, you can do the adjustable, and often has quite a
opposite and change from an bit higher interest rate than the
adjustable rate to a fixed rate; first loan. Refinancing the two
this can keep your interest rates loans into one can often save
from skyrocketing. money. Another strategy would be
to pay down the equity line as
You may be able to lower your soon as possible.
Beware of low start rate
10-year and 15-year fixed programs. They are usually not
mortgages usually have lower the actual interest rate, and may
interest rates because the loan be simply a teaser or a negative
is getting paid twice as fast as amortization program that defers
a 30-year mortgage. The down-side your interest payment until a
is that the payments will be later date. This can help lower
quite a bit higher. payments, but not the actual
interest rate or amount you’ll
No matter why you decide to owe in the end.
refinance, always be sure to
speak with several lenders first, Remember, before you take
or find out who your friends and advantage of any refinancing
colleagues use. Good referrals offer, find out if it will
are the best way to find a actually save you money. On-line
mortgage professional you can mortgage calculators help
trust. Sometimes brokers may give determine how much you’ll pay
you a quote that is not what you using your new and old interest
eventually get. Be sure to ask rates. Then you can just deduct
for a good faith estimate and ask the points and fees (unless
to see proof that your loan is they’re included in the new
locked at the rate you are quoted mortgage) and find out how much
to ensure it is the rate you you’ll actually be saving.
actually get.
About the Author:
Kathy Fettke is a real estate investor, certified personal coach, and host of The Real Wealth radio show. Kathy specializes in helping people build multi-million dollar real estate portfolios through creative finance and careful planning. Learn more at http://www.RealWealthNetwork.com
Read more articles by:
Kathy Fettke
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