Financing your dream home requires quite a lot of courage and a big investment. So it is important to cut down as many expenses as possible. While mortgage lenders know how to reduce costs, they’ll obviously never tell you.

So here are some secrets or tips to save you a good amount of money while you invest in your future home.

Make your payments at the end of the month
One thing you could do to save on a lot of money in the form of interest is to make your monthly payments toward the end of the month. Although it sounds very simple, this can really help to save you hundreds of dollars.

The unpredictability of interest rates
Even if your mortgage lender determines whether interest rates are going up or down, he can never know for sure what the rates will look like the next day. So, if you find a mortgage with a good interest, you should immediately lock it; but if you don’t, you should move on and find a better deal. If you lock your interest rate, it will stay in place, irrespective of whether the market rate rises or falls.

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There’s always going to be a hidden cost
If you see an advertisement for a no-cost mortgage, avoid it. There is no such thing a no-cost mortgage. If you’re offered a no-cost mortgage, it will carry very high interests or other additional charges. To avoid getting trapped, ensure that you have a detailed documentation of your future and final payments before signing the papers.

Refinancing isn’t always an option
If you’ve paid off some of your mortgages and are planning to refinance with another traditional loan, you should know that you may end up paying an entire loan all over again even if it carries a lower interest rate. This also means that you add more years of debt.

Also, when you start paying off a new loan, most of your payment will go towards paying the interest. But on the other hand, if you continue paying for the same loan, you’ll be paying more toward your principal balance after a period.

If you are dealing with multiple loans, make sure you do thorough research on all the loans and how their repayments may affect your finances.

FHA mortgages
For a conventional loan, you will require a credit score of at least 680. But if you are experiencing credit problems, there’s another option you could try. The Federal Housing Administration (FHA) mortgage loans require a minimum credit score of only 620. Plus, the FHA also requires a lesser down payment than conventional loans.

Give your mortgage a break
If you default on your payments and your house is going to be foreclosed, you could go into forbearance with your lender. This is applicable to people who are facing a major financial crisis. Depending on the situation of your finances, your lender can suspend payments for many months.

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