Buying a new home isn’t as easy as it used to be. As a matter of fact, it is downright confusing. There are so many different numbers to keep track of it can make your head spin. My advice is if you’re going to pay attention to any number at all, make it the interest rate you pay the most attention to.
For those of you looking to finance the cost of a new home, then there is a good possibility that you will face the choice of picking between more than one Dallas mortgage loan options. You’ll be offered Dallas mortgage loans with various interest rates, payment terms and length. As you can see, the interest rate you are approved for is the most obvious way save money on your Dallas mortgage.
A Dallas mortgage loan with a low interest rate means lower payments and less overall cost for the loan. For potential homeowners with poor credit, you probably won’t be approved for the best interest rate. That doesn’t mean all is lost. There are other ways to save money on your Dallas Texas Mortgage loan. Here are just a few:
Choose the right home mortgage
Dallas mortgage loans are available with a range of interest rate choices. Short term adjustable rate loans are your best bet to save money since they come with lower interest rates than 30-year fixed-rate Dallas home loans. After the initial fixed period, the monthly payments adjust with the index for the rest of the 30 year term.
You don’t need mortgage insurance
Dallas home loans with less than a 20% down payment will require mortgage insurance. There is no getting around this. This rule was created to protect the bank’s investment. The Dallas mortgage industry can avoid mortgage insurance by cutting your loan into a combo loan. The first mortgage being 80% of the loan, and the remainder of what you did not pay as a down payment. After you’ve paid 20% of the loan off, drop the insurance and save money.
Make more payments
There are a few other options which come with a Dallas Texas mortgage. One of your options is to go with a bi-weekly payment which works great for people are paid on a bi-weekly basis. Each time you make an extra payment, the life of your loan is shortened. Two payments a month instead of one, takes a little over 23 years to repay a 30-year fixed-rate mortgage.
Using just one or two of these above tips can save you hundreds and sometimes thousands of dollars in the total cost of your overall mortgage. You can also try docker.com if you want to ensure utmost financial security. You’ll have no problem paying off your loan faster.