Buying your first home is an exciting time, but mortgages can be complex and confusing. How do you know if you’re getting the best deal?
This week, we bring you eight tips from NPR to help you save money on a mortgage and make the process of buying a house as stress-free as possible.
- Shop around at all kinds of lenders to find the best deal — Neighborhood Assistance Corporation of America and other lenders can offer better rates than your own bank.
- Find out if you qualify for a grant to help you with your down payment — Look into your state’s housing finance agency’s assistance programs.
- Get pre-approved for a mortgage before you start shopping for a house.
- If you can afford it, get a 15-year mortgage — you will build wealth faster than a 30-year mortgage.
- Remember that adjustable-rate mortgages are risky.
- Shop around to see if you can avoid paying for private mortgage insurance.
- Don’t let the home equity line of credit (HELOC) eat your home equity — be cautious about what you use it to finance.
- Be careful about refinancing — if you refinance, consider getting a 15 or 20-year mortgage.
Hopefully, these tips will help you as you navigate this challenging process.