These Tips Will Help You Choose the Best Mortgage & Save You Thousands

Hello Hampton Roads,

The key to choosing the best mortgage loan and savings thousands is to do your research ahead of time.  Just like you put time, energy and forethought into the kind of house you want, the features it has to have, and neighborhood you want to live in, the same attention should be given to the type of mortgage loan you use and how it can best serve you.  Not all loans are created equal and there are certainly things you can do both before and after you get a mortgage that can literally save you thousands!

Before You Get a Mortgage
Your credit standing will play a large roll in the types of loans and programs available to you. When considering your options, it's not just about down payment amounts, interest rates and fees, but also the ability to use and combine programs with down payment assistance and grants.  These are available for first time buyers or community partners (teachers, medical workers, police, firefighters, military and first responders).  Many options exist!

There are 100% financing loan options like VA, USDA and FHA plus, and there are low down payment options like FHA (3.5% down) or FNMA (3% down). The FNMA loan has options for reduced or no mortgage insurance (MI).  MI is an additional fee paid on loans with less than 20% down.

Buyers can combine down payment assistance (DPA) programs and community grants to get  100% financing. In some cases funds can also be used for closing costs assistance, which can greatly reduce the buyer's expenses at closing.

Alternatively, if you already have down payment funds and plan on living in the home for 10 years or less, you can consider qualifying for a 10yr adjustable rate mortgage (ARM).  ARMs lock in a low interest rates for a given period to keep payments low. If you are planning on moving before the mortgage adjusts, then this may be an option.

After You Get a Mortgage
Talk to your bank about setting up a bi-weekly mortgage payment.  This is when your mortgage bill is split in half and paid every 2 weeks.  This results in you making one extra full month's payment a year which will not only cause you pay off your loan sooner but you'll save thousands in interest payments!  Some banks such as Chase, offer this payment option free of charge while some others may charge you a set up fee.

You can also increase your monthly payment by 1/12 so that the extra goes towards principal and you will end up making one extra mortgage payment a year.  Anytime you can reduce the principal, you will end up paying less To see how much you could save by making additional payments to principal, you can check out this handy calculator.

I hope this was helpful and if you are planning on buying a home and have any questions, please feel free to contact me or schedule a call.

Thanks for Reading,


Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+


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