Mortgage Tricks: 4 Secrets to Securing the Best Price When Buying a Home

Although the housing market is stable from the recession thanks to the tax payers bailing out banking giants, there are still people who want houses and need tips. There has been an explosion in decent paying jobs as production companies and high tech industries are coming back to America, and there will be many more coming and forced to via Presidential Executive Orders. A lot of these people will be in the market for houses all across the country, so here are four secrets to getting a good price on home.

 Calculate Payments on Different Mortgages With a real Estate Agent

There are fixed mortgages and adjustable rate mortgages. Fixed mortgages are wonderful for stability, and a person or family would not purchase a house unless they had decent credit and believed they had a stable income. Adjustable rate mortgages are generally better deals, especially at first, but they can jump price several times. In order to find to pick the best mortgage, a calculator should be employed to determine payments for adjustable rate mortgages for different payments. If several calculations come out higher than a fixed rate, then choosing the fixed rate is best mortgage option and the most financially stable. People often forget interest in the price of their home. This is the best secret to work on with a realtor like RE/MAX Platinum Living or someone similar because the interest only affects the bank. A real estate agent would be happy to help because a sale saving the buyer on the back end still does not have an effect on the agent’s front end commission.


Decide on Whether to Pay Points

The average home buyer stays in their house under a year, so purchasing points is not worth it. Unless a buyer decides to spend a long time or the rest of their lives in a house, points are an unwise expense. There are drawbacks with lenders to passing on points, but the jargon a lender will use to convince buyer is used only to cover for the fact the buyer will be paying significantly more interest. Pass on points, especially in starter homes.

The Buyer should Search for Assistance Programs Suited for Them

There are a host of special loans out there designed to help a buyer with the mortgage. It may take a bit of research but not much. These are not the only programs, but there are good examples, such as USDA loans, FHA loans, loans from the VA and First-time buyer programs. 

 Look for Purchasing Assistance

This is a little different than special mortgage programs. These programs can lessen the amount of your mortgage, and they can cut down on the time it takes to pay them, as well as monthly payments. There are not a lot of these grants and programs in existence, but the most famous one is HUD, which stands for housing and urban development. The HUD website will also provide buyers with a list programs for mortgage assistance in each state, especially for younger couples with no criminal record.

The secrets listed above will assist a great number of people in the market for a home. People looking for their first home, the poor to low-middle class and even the middle class can find a use for one or combination of these. Use these little known secrets well.

About the Author:

Kara Masterson is a freelance writer from Utah. She enjoys Tennis and spending time with her family.
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