You’d think that, by now, everyone know everything there is to know about mortgages. We all deal with them, and they are important, so you’d figure that people would already know everything there is to know about them. But that’s not the case. It might surprise you, but they still have some secrets. Here are the things you didn’t know about mortgages.
1. You can save a lot of money with a shorter term loan.
Most mortgages have 15- or 30-year terms and fixed rates. Every online mortgage calculator will show you that the longer the mortgage, the more you spend. So, if you can afford the monthly payments, you should always opt for a shorter term mortgage.
2. A bi-weekly payment schedule is a good money saver.
Bi-weekly payments are an alternative to monthly payments. Some banks allow and even encourage them. Studies have shown that, with a bi-weekly payment, you can shorten your a 30-year loan term by 49 months. This will, in turn, save you money.
3. A middleman can help.
We tend not to trust middlemen, but sometimes a mortgage broker is just what you need. Mortgage brokers are financial services firms that will help you find a mortgage. These financial services have good relationships with lenders and can help you find out what the rates are for each loan type.
As we already know, the best way to save money is to shop around and get as many quotes as possible. A mortgage broker can help you do that without you having to waste any of your own time. Not to mention that you’ll also get help with the paperwork and other things that you need to set in order before getting approved for the loan.
Buying a home and getting a mortgage are two of the biggest financial decisions most of us will ever make. That’s why it’s so important to know everything about mortgages, absolutely everything.