The Secret To Real Savings On Your Mortgage Is A Good Mortgage Strategy

The Secret To Real Savings On Your Mortgage Is A Good Mortgage Strategy



The Secret to​ Real Savings on​ Your Mortgage is​ a​ Good Mortgage Strategy
If you​ are looking at​ buying a​ home or​ refinancing your existing home,​ you​ have probably been having a​ lot of​ conversations about interest rates .​
If you​ enjoy talking about interest rates,​ fine,​ go ahead .​
It's like talking about the​ weather: it​ won't make any difference,​ but it​ gives you​ something to​ talk about.
The simple truth is​ that the​ variance in​ interest rates from one lending institution to​ another is​ so small that it​ will not make a​ big difference in​ the​ total cost of​ your mortgage.
As a​ matter of​ fact,​ the​ difference is​ only about .06%,​ which is​ a​ saving of​ $41.12 per year on​ a​ $100,​000 mortgage.
With all the​ emphasis lately on​ credit scores and credit ratings,​ it​ is​ surprising that a​ lot of​ people still believe that shopping around for the​ best rate will make a​ big difference .​
Credit scores are based on​ a​ consumer's credit worthiness: whether you​ pay your bills on​ time,​ if​ you​ have ever defaulted on​ a​ loan,​ whether other lenders have been willing to​ lend to​ you,​ etc .​
a​ credit score of​ 500 will mean you​ are not a​ good risk,​ and a​ credit score of​ 700 will mean you​ are a​ better risk .​
Lenders set their rates for a​ consumer based on​ this score .​
That's all there is​ to​ it .​
So apart from a​ few points difference,​ all the​ banks are going to​ quote the​ same rate for a​ person with a​ score of​ 650 .​
Lets' look at​ that interest rate savings of​ $41.12 per year .​
If you​ look around for more than 6 hours,​ you​ are paying yourself only $6.85 per hour for your time.
The only way to​ have a​ real savings on​ your mortgage is​ to​ have an​ overall mortgage strategy .​
There are many types of​ mortgages being offered,​ and the​ combinations of​ benchmark rate used,​ terms of​ payment and duration of​ loan can have a​ great overall impact on​ the​ loan over time .​
This is​ what is​ more important to​ look at .​
Finding the​ mortgage expert who will discuss more than just the​ interest rate,​ but instead will understand the​ economic markets and examine your financial situation and longer term plans will achieve much more savings on​ your mortgage .​
Choosing the​ right mortgage strategy can save you​ tens of​ thousands of​ dollars,​ as​ compared to​ the​ $40 cited above that can be saved on​ a​ lower interest rate.
How can you​ find out the​ best strategy? Working with a​ mortgage consultant who understands the​ economic markets,​ who works closely with you,​ who understands your needs and particular circumstances,​ and who combines this knowledge and information with the​ best rates available is​ the​ secret to​ finding the​ right mortgage strategy .​
Understanding this concept can save you​ tens of​ thousands of​ dollars in​ home loan costs,​ rather than tens of​ dollars.
Not convinced? you​ can get more details and understand how this phenomenon can be true by reading more articles on​ our website.




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