In the mortgage industry, the landscape of lending has changed significantly over the past decade. Getting a mortgage today isn’t the same process it was 10 years ago. That’s why you should know these four secret tips for saving big on your mortgage in today’s current market.
Secret #1: Apply with the bank you already do business with.
Despite the ups and downs of the real estate and mortgage markets, there’s still something to be said for the benefit of loyalty. Consider applying for a mortgage at the same bank where you have a checking account and/or savings account. Many banks offer mortgage products with an interest rate discount if the applicant has a checking or savings account with that bank. They do this to increase customer
loyalty so take advantage of it.
Secret #2: Look around for mortgage discounts based on your occupation.
Many businesses offer discounts for teachers, firefighters, emergency personnel and police officers. If you are in one of these community service-oriented occupations, it should be quite easy to find lenders offering discounts. Even if you aren’t in a community service line of work but volunteer your time in the community, there still might be options for you to consider.
Secret #3: See if your state offers a Mortgage Credit Certificate (MCC)
A Mortgage Credit Certificate provides homeowners with a direct tax credit for a percentage of mortgage interest paid for the life of the loan.
Secret #4: Borrow money for closing costs instead of rolling it into the mortgage.
You’ll be paying a percentage of those costs over the life of your loan, so avoid rolling them into the mortgage. It’s much better to borrow the amount for closing costs if you need to, especially if it’s a low interest rate or (preferably) 0% APR.