South Windsor Mortage. Asking questions about your new loan can help you to make sure you save money shopping for your new loan. Here are 5 tips to saving money.
1. PAYING POINTS, IS THERE A BENEFIT OR DISADVANTAGE? A point is a one time payment at closing equal to one percent of your loan amount. Basically upfront interest. They make sense when you can get a return on your investment. If you can save 3 times as much over a 10 year period that you pay upfront and they could make sense. The do not make sense when you will not save enough to warrant the upfront cost, or if paying them will not lower your interest rate. When talking rate ask what options are available, what is the zero, one and two point rate. Which one is the best option? You may find the no point rate is the best deal, you might also be surprised to find how much you save with two points. Home Buyers who are being relocated to South Windsor and have a relocation package that includes up to two points, make sure to take advantage of the full credit in your new South Windsor Mortgage.
2. PREPAYMENT PENALTIES, DO I HAVE TO?. For the most part there is no need to have a pre-payment penalty. Ask if the rate you are being quoted has a pre-payment penalty, and if it does get an explanation of how it is computed and when it will apply. Allow yourself the flexibility to act if rates improve, or you want to sell. A prepayment penalty will be the exception today on your South Windsor Mortgage, but ask you do not want a surprise.
3. SHOULD WE GET A FIXED RATE OR ADJUSTABLE RATE SOUTH WINDSOR MORTGAGE? Long term rates are so attractive right now compared with short term rates, it often doesn't even make sense to talk about anything but a 30 year fixed rate. Why gamble with an adjustable 5/1 if you might be in the house 7-10 years if the 30 year fixed is just 1/8th percent higher?
4. THE QUESTION OF PAYING NO CLOSING COSTS OR TO PAY CLOSING COST? This depends on how long you intend to keep the property and the loan. People keep homes about 8 years, but mortgages about 5 years. With that in mind maybe paying $30 a month more on the loan and having no closing costs costs less over 5 years than $3000 in closing costs. But if you are going to be in that same loan and home for 15 years, it might make sense to pay the closing costs at closing. If you can get the seller to pay some or all of your closing costs, that can save you money as well. South Windsor Connecticut is a home buyers market right now, it is not uncommon to ask the seller to give a credit at closing for closing costs.
5. YOUR MORTGAGE AND TAX DEDUCTIONS Be an informed home buyer, seek the advice of a tax professional to fully understand the benefits of owning a home, and how the home and loan you select will impact your tax situation. If you would like a referral to a great accountant in Connecticut located right in South Windsor, check out Don Brooks & Associates.
Asking questions upfront can help you make sure you get a great loan when you get your South Windsor Mortgage.
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"
Connecticut Magazine 2013, 2014, 2015 Five Star Mortgage Professional Award Recipient