Saving money and paying off loans on your mortgage may not be a usual pairing, but it can be done. This usually entails a bit of deliberation on your future mortgage payment. You have to look at the general picture instead of what you can have at the moment. Here are a couple of tips on how to save a lot of money while paying off your loan.
As much as possible, you have to scout around and avail of loans via a prime lender. A prime lending company can offer you the best mortgage rate. This means that you have fewer payments due and more benefits to gain as opposed to loans from sub-prime lenders. As you know, sub-prime lending companies (for bad credit and such) tend to charge exorbitant fees for their loans, as a guarantee against possible non-completion of payment.
Scouting around and availing loans from prime lenders may sound easy enough to do. However, according to recent market studies, a number of people are actually making a beeline to the sub-prime lenders instead. Why? People simply assume that sub-prime loans are all they can handle. These are the people who: at one point or the other declared bankruptcy; missed multiple payments on other credit companies; are paying off a number of other loans; etc.
Low credit score is not synonymous with bad credit. There are also some people who do have (or have had) bad credit rating, but with a credit score that is on an acceptable plateau. In which case, there will always be one or more prime lending company that will accept their business.
If you are indeed looking at sub-prime loans, it would be best to check your credit score first. You might be pleasantly surprised to find that some prime lenders will accept loan applications from you despite your low rating. On the other hand, if your credit score does not qualify for prime loans, you have to at least make sure that you are choosing loans from sub-prime lending company with the largest possible down imbursement.
Calculate your risks beforehand. Who among us have never been enticed with such engaging promises of great pay-outs for the mortgage we have now? Unfortunately for most of us, we learn the pitfalls and drawbacks of our current loans a bit too late.
The rule of thumb here is: never fall for the first loan that comes your way. There will always be a better deal somewhere. If you are not at all familiar with the ins-and-outs of mortgage, mortgage rate, and mortgage payment, you may want to hire the services of a lending officer or financial adviser. These pros can lead you to the best deals in the market.
However, if you would rather do this on your own, then you should really take your time analyzing all aspects of the loan: from the loaning company, right down to the last payment you have to give. These days, it is easy enough to figure out just how much money you are to gain in a loan and eventually shell out for its payment. A mortgage calculator is an invaluable tool indeed, and a great number of these are free to download from the web and use at your convenience. More specialized tools like the mortgage rate calculator and the mortgage payment calculator are also downloadable free of charge. (Apostol Lucian)