Tips To Save On Housing
1. Purchase a home in an area with good schools. Even if you never have school-age children, strong school systems are a top priority for many home buyers. This will make selling easier and increases the chances that your property value will rise.
2. Get the shortest loan term you can afford. Usually the shorter the term, the higher your monthly payments will be, but you'll save much more in the long run due to paying less in interest charges.
3. Avoid purchasing a home with an "incurable defect." Such things as a busy street or train tracks nearby will most likely get you a discount, but the house's value will not increase as much as other homes in the town, and you will have a much harder time selling it when you are ready to move.
4. Consider carefully before doing house renovations that will make your house one of the more expensive in your neighborhood. For resale purposes, it's better to own one of the less expensive houses on an expensive block.
5. Consider refinancing your mortgage, especially if your current home loan is over 2 years old. Even reductions of as little as 1/2 of a percent can save you hundreds of dollars a year and thousands over the lifetime of the loan.
6. If at all possible, choose a 15 year mortgage for your house instead of a typical 30 year mortgage. Not only will you pay off your loan a lot quicker, you'll save tens of thousands of dollars, and quite possibly well over $100,000, in interest costs.
7. If you are a police officer or a state certified teacher, you may be able to purchase a home in a "distressed" neighborhood for 50% of the market value. The U.S. Department of Housing and Urban Development (HUD) has a "Good Neighbor" program to revitalize neighborhoods which can give you this huge break if you meet the requirements.
8. If you are a veteran, it is possible for you to buy a house with virtually no down payment through the VA, although you will be responsible for a small number of closing fees. The VA also has many listings for non-veterans which require only a $500 down payment in addition to the same closing cost fees.
9. If you have a small yard, consider getting a push mower instead of a power mower. It doesn't use any gas, oil or spark plugs, has minimal maintenance costs and will do the job just as well.
10. If you have good credit and your mortgage company tries to charge a loan origination fee, point out your good credit rating by showing your credit score. Depending on how adamant you are, you should be able to get this fee waived.
11. If you know you will be applying for a home or car loan, check out your own credit report a few months before you apply for the loan to avoid surprises. If everything is in order, you'll be in a better position to negotiate with your lender. If there is inaccurate information, you'll have time to reverse the errors so you don't have problems receiving the loan.
12. If you're planning to move, get several estimates from different moving companies who physically come to your residence. You can get estimates online, but you'll get a better idea of your overall bill if someone takes an inventory of all of your belongings in person.
13. Instead of planting annuals in your garden, consider planting perennial plants. You only have to pay for them once and can enjoy them year after year. If you choose annual plants, you must pay to restock your garden every year.
14. It's worthwhile to invest in a good home repair manual. This will allow you to do many jobs on your own, and even when you can't, you'll be better prepared to negotiate with the contractor.
15. Only consider buying a home if you plan to be in it for 5 or more years. The costs of buying and selling a home, in addition to the slow rate of appreciation, increase the chances that you will lose money if you plan to stay only a short period.
16. Property insurers will often reduce premiums to homeowners with electronic security systems. Check with your insurer because your insurance savings could cover the cost of installing the system.
17. To prevent costly storm damage, trim tree branches close to your house. Don't forget to also clean out rain gutters to prevent water damage from overflowing and extend their use life.
18. When getting a loan, look at the overall cost of the loan, not just the rate. Ask for a list of all the fees and charges involved and then calculate how much it will actually cost you.
19. When refinancing your home loan, don't extend the loan back to 30 years. Shorten it if possible, or keep it the same as the current number of years left. By extending it out, you will lose most of your saving to additional interest payments.
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