10 Ways to Save $ On Your Home Loan

10 Ways to Save Mortgage Money

1 - Shop around - Get a Good Faith Estimate from three lenders and compare rates and terms. Note: Don't let them all pull your credit or you'll have too many "hits" on your credit report, which can reduce your credit score. Instead, get a copy of your credit report to show them your middle score (the mid score from the top three credit reporting agencies.) You can get a free copy of your credit reports from Experian, Equifax and TransUnion once a year at www.annualcreditreport.com.

2 - Get out of Private Mortgage Insurance (PMI) by putting 20 percent or more down, getting a special no-PMI-loan, or doing a combination loan such as a 90/5/5 or an 80/20 loan (where, for instance, you get 100% financing with one loan for 80 percent and the second loan at 20 percent.)

3 - If you do have PMI, keep a close watch on the value of your home versus the balance of the loan. Once you have 20 percent equity in the home, request in writing that your lender remove your PMI.

4 - Negotiate - Many fees are negotiable. Go over each one with your lender and try to get them to remove or reduce the fees. While you're at it, try to get a reduced interest rate. Many times a mortgage broker can find you a better deal with a little checking around.

5 - If you're a Veteran, use your benefits and get a VA loan. These loans usually have excellent interest rates and NO monthly PMI. Yes, you can have more than one VA loan - just not more than one at a time.

6 - Get free down payment money if you need it from an organization that helps fund homebuyer's loans. Follow this link for a list: FREE MONEY

7 - Keep your credit score in tip-top condition. The better your credit, the better deal and interest rate you can negotiate.

8 - Assume a mortgage that has a lower interest rate. Many loans are assumable. If you find a home you love, have the seller check with his or her lender to find out if you would be able to assume their loan.

9 - Take out a 15- or 20-year loan instead of a 30-year (or longer.) You'll save thousands in the long run if you stay in the home.

10 - Pay your fees up front if you are able to. This will keep down the amount you'll finance over the long term, reducing your payment and the amount of interest you'll pay over time.

There are more ways to save coming up, so check back often! Click here for the latest in mortgage and loan articles: MORTGAGES AND LOANS - LATEST ARTICLES