Find Out How You Can
SAVE ON YOUR INVESTMENT
Here are some ways to save on your investment:
- Choose a low down payment loan. You do not necessarily have to put 20 percent, or even 10 percent, down. You can put 5 percent, or even 3 percent, down on some loans. Ask whether or nor your loan includes “private mortgage insurance” or PMI.
- As part of your offer, ask the seller to pay some of your closing costs. Sellers are usually allowed to contribute to a buyer’s closing costs. In many cases this is a negotiable item.
- Shop around for your home insurance. A little shopping can save you a significant amount of money.
- You can deduct money paid for discount points from your gross income before computing your tax, which would effectively reduce the cost to you. Always check with your CPA to find out specific guidelines in your area.
Keep your monthly payments low:
- Get a loan with no monthly mortgage insurance premiums. You may be able to reduce or eliminate them by paying a little more at closing. By putting 20 percent or more down, you may be able to eliminate them entirely.
- Choose an Adjustable Rate Mortgage. ARMs can be up to 3 percent lower than fixed rates.
Remember that interest payments on a primary residential mortgage are fully deductible in most circumstances. Your property taxes may also be deductible. Tax rates definitely favor homeowners.