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Tips To Save On Housing

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    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.

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    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.
    Last edited by nate; 03-16-2013, 08:25 AM.

    #2
    Re: Tips To Save On Housing

    Make an extra payment from time to time; adding just $100 extra per month to a $100k 30-year fixed loan (6% interest) can cut 9 YEARS off of your loan.

    This saves you almost $40,000 in interest!

    Comment


      #3
      Re: Tips To Save On Housing

      for landscaping, you want to do it yourself but dont know where to start. you can contact your local landscaping co's for purchasing thier drawings and then do it yourself. tell them exactly what you want to see and let them do thier visit and measure and drawings, u can get a gr8 vision for prolly 200 dollars approx. and then follow the plan you both come up with on your own. this way at least you know in advance what it should look like in the end. a contractor/landscaper in town, wins the local contests all the time. i see them buy beer all the time and know they dont drink! so i asked and thats thier secret! they top the lawn once a week with beer! best lookin yard i ever saw.

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        #4
        Re: Tips To Save On Housing

        WE took a two night landscaping course up at the highschool. We really learned a lot and the teacher sat with each couple and gave ideas. The most important thing we learned was to layer. For example we would put (in front of main window) 5 large green bushes, in front of that we would put 3 smaller different bushes, and then one smaller different one in the front.
        Our yard really looks good and cost less than $1000 for the plants. (WE have a big house and it is landscaped all around the house)

        Comment


          #5
          Re: Tips To Save On Housing

          thats such a gr8 story! how did you find out about it and how much did it cost?

          Comment


            #6
            I agree with AntiCost. Make bi-weekly payments instead of monthly. If you pay 1/2 your mortgage payment, 2x per month, you can still trim 5 years off a 30-year mortgage just by the saved interest. Check out this site if you want to see the calculations for yourself!

            Propertylook.com.au

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              #7
              I don't know if getting a 15 year mortgage instead of a 30 year one always makes sense. I think it is best to get the 30 year one, but then plan to pay it off in 15 years....this way if something happens, you can lessen your mortgage and not owe as much.

              Of course, you have to make sure you are not penalized if you pay it off early.

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                #8
                What a great thread!

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                  #9
                  I fought my property tax assessment this year and the city approved a 29% reduction! This saved me $2400 per yr.

                  I have read that something like 2-4% of homeowners ever fight their assessment, and its easy to do (total time I spent was under 2 hrs). So if you are seeing homes around you sell for less than your assessed value, look into this.

                  My county makes it easy with all the forms and a searchable database of housing assessments available on their website.

                  Comment


                    #10
                    This is a very long list of saving tips on housing. I really appreciate your efforts for this post.
                    These are really some serious tips and very helpful for saving on housing. I have read some of these tips before but some tips in this post are very unique and fresh which I found very much interesting to read.
                    Last edited by mikal; 08-09-2013, 10:36 PM.

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                      #11
                      Very informative. Thanks guys

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                        #12
                        I will not add up to those amazing comments ahead. I have a great time reading this thread. Full of information and it is very helpful to those people who are having thoughts about moving to a new house or buying a new house.

                        Comment


                          #13
                          wonderful

                          wonderful

                          Comment


                            #14
                            amazing comments

                            amazing comments

                            Comment


                              #15
                              #1 and #7 are opposite. The HUD distressed homes are never in good school district areas. I wish they were!

                              Typically the discount is only for first time home buyers too.

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