Save Money on Your Mortgage in 2010

Save Money on Your Mortgage in 2010

Home ownership is a still an aspiration for Americans, even amid economic woes. The credit crunch and anticipation of a spike in interest rates complicates the home buying process.
Smart buyers capitalize on the market’s shortcomings by thinking of ways to save money on their mortgage. There’s no use in making whimsical decisions or listening to one lender. Buying a home easily ranks as one of the biggest investments of your life.

Don’t just shop homes, shop lenders too. Doing so shows you ways to save on your mortgage, and every penny counts. Seize every money-saving opportunity.

To help you save your hard-earned money, consider these tips:

  • Be A Credit Expert
  • Choose A Loan Type That Suits You
  • Find A Favorable Loan Length

Be a credit expert

Lenders look at your credit score to help assign an interest rate to your mortgage. You’re at a serious disadvantage if you’re one of four people whose credit report is erroneous. Inaccuracies may block you from getting a mortgage, and will make your interest rate soar.
You’re responsible for meticulously picking apart your credit report. If you find mistakes, document them clearly so you can make a case to the credit agency. Do not let inaccuracies ruin your credit score and mortgage terms. Otherwise you will pay for it.

Choose a loan type that suits you

Most conventional mortgages require down payments of up to 20 percent. Paying that 20 percent up front likely means you won’t have to pay private mortgage insurance every month.

However, a few government loans eliminate hefty down payments and PMI. Qualifying veterans and active-duty military members have access to the VA home loan program, which greatly reduces or removes down payments. The Department of Veterans Affairs insures these loans that are loaded with financial benefits. USDA loans serve mostly rural homebuyers, but like VA loans they often feature no money down.

Buyers who saved money for a down payment may be better off going for a conventional mortgage. Nevertheless, there’s no harm in finding out for which government-backed programs you qualify.

Find a favorable loan length

. Go for the shortest mortgage life that you can afford. First-time homebuyers spend years paying off the interest before they get a chance to chip away at the principal. You can get 15- or 30-year fixed-rate mortgages, while most adjustable rate mortgages run 5-1 and 7-1.

With interest rate increases imminent fixed-rate mortgages may be best, but it depends on how much money you have now and how much you’ll be making. Regardless, always shoot for the shortest mortgage. It will save you money in the long run. For example, financing $80,000 with 7 percent interest costs $42,000 less with a 20-year mortgage than with a 30-year one.

Pay in advance

Make an effort to put an extra $100 each month toward your monthly payment. No matter what these little extras save thousands in the long run, but might cost you in the short run assuming your mortgage has prepayment penalties.

Making these payments shorten the life of the mortgage and save you money. The savings for a 20-year, $100,000 mortgage with 7 percent interest are considerable. You’d save $20,000 and trim the mortgage by four years. When you send the extra payment, tell the mortgage holder that it goes toward the loan principal.

Do not settle for a lender who fails to work with you or doesn’t do everything to save you money. Be suspect of lenders who ignore your questions. It seems like common sense, but some prospective homebuyers get stuck with questionable lenders.

Sunstreet Mortgage Opens Office in Mesa Arizona

My friend Christoph Schweiger announced that his new office is now open for business today.

Christoph works for Sunstreet Mortgage in their new Mesa office and is surely to rise fast t be one of the valley’s most respected loan officers.

Christoph comes from the Real Estate side and having recently made the move to becoming a loan officer, he will be easy for Realtors to work with because he understands what it is like to be on the other side of the fence.

And if you are a buyer, who better to work with that understands the Realtor’s needs regarding your transaction as well as the lending requirements?

Sunstreet Mortgage highlights include:

  • Many years of experience by the company management in mortgage banking
  • 2 Managers in Tempe: Gary Miljour and Kim Chartier
  • Sunstreet Mortgage is based in Tucson with branch offices in Nogales, Arizona and Albuquerque, New Mexico
  • Was founded by John E. Capp, Sarah J. Roads and Patrick W. Sniezek

Grand Opening Party

Christoph says that they are planning a grand opening party once they have fully moved into the new space, but if you want to stop in – feel free to stop by anytime.

You can find the Sunstreet Mortgage office in the Stapley Corporate Center , 1910 S Stapley Dr., Suite 202, Mesa, Arizona 85204

Introducing Mike Moshofsky

Now that the NEW AZ Mortgage Guru has arrived, I am taking matters into my hands. I have decided that one person can only handle so much. Two is always better! So…in light of this revelation – well…and also being 9 months pregnant and about to go on maternity leave — I have decided to partner up with the Senior Mortgage Professional in our office, Mike.

Mike is THE MAN Shailesh and I have gone to for mortgage advice, input, information, help and coaching in the last 4 years. He is amazing. Not only does have a TON of experience and knowledge (over 20 years in the industry), but he is actually a great guy. Someone you’d want to hang out with after work and have a beer with.

So, without further ado… I interviewed my new partner, Mike Moshofsky for this blog to better introduce him to the online community.

Question: What makes you different from other lenders?

Answer: I am different from other lenders because of my knowledge, experience, integrity and work ethic. I personally have over 25 years of mortgage experience and a thorough knowledge of mortgage lending including FHA, VA, USDA Rural housing and conventional financing.  This experience and knowledge helps me identify potential problems early in the process and avoid these problems or solve them so we don’t have last minute surprises.  I believe in sprinting to the finish line and waiting for everyone else. Stress is eliminated when my documents are delivered to title well in advance of the close of escrow.  This makes happy buyers, and brings repeat clients and multiple referrals.

What characterizes you?

Integrity and honesty are my strongest characteristics.  The agents I have worked with for years know  they can count on me every time.  When I say something will happen they can rest assured it will.  My goal is to provide my agents and clients a quick approval that they can count on.  However, I believe a fast “no” is better than a slow “no”.  If a transaction has no chance, everyone would prefer  to know on day one, and not on day 31.

What about your work ethic and loyalty?

I work long hours Monday through Friday and am typically in my office working for my agents and clients from morning till night.  I am not the loan guy that spends all his time getting new agents and clients only to mess up the transaction so they have to go find other referral sources.  I want to take care of the referral sources I have.    That is my idea of a marketing plan.

What are some of your motto’s in this business?

A fast No is better than a slow No.

Under promise and over deliver.

If you think it is expensive to work with a professional, wait until you find the cost of working with someone that is not.

You have to know what you don’t know.  If you are not positive on an answer, get clarification.  Guessing is very expensive.

Never, Never, Never miss a close of escrow.

What advice would you give potential home-buyers and their agents when they are hunting for a mortgage professional?

There are many excellent loan officers out there.  The problem is there are also many unqualified loan officers and it is often hard to tell the difference.  Many sound great, but do not deliver.  My advice is to ask your Realtor for a referral of someone they have had positive results from in the past.  The Real Estate Agent wants you to work with a professional that consistently delivers quality service at a competitive price.

What do you love about this business?

I love figuring out ways to close mortgages that other said were impossible.  I love dealing with first time homebuyers and their energy and excitement when they get the keys to their first home.

What do you hate about this business?

I hate the fact that there are so many non-professionals in the industry.  I believe we need to have licensing, required training and be held to a higher standard.

I look forward to working with Mike during this time of change for me and my family. I plan on working until the day I give birth and then afterward will take some time off. I will be accessible through eMail a few weeks following the birth, but will not be back in full time action until 2 months. I really appreciate Mike stepping in and helping out during this time.

To contact Mike, please use the following methods!

E-mail: [email protected]

Direct: 480-346-8383

Cell: 480-332-8545

Fax: 866-908-6596

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.