Interest rates in Crow Wing County and across the country are slowly rising. Mortgage costs can really impact any family budget. Here are a few tips to help reduce your mortgage costs.
Refinance
Refinancing your current mortgage can save you money. Refinancing allows you to pay off your current mortgage and obtain a new one, which can help you lower your monthly payments if you qualify for a lower interest rate.
Shop Around
No matter if you are seeking a new home loan or trying to refinance your current mortgage shopping around will be essential to cutting your mortgage costs. It is not uncommon for people to become comfortable with their bank and not take the time to shop around for a better rate, but this could cost you thousands. The Federal Reserve Board says, “Shopping, comparing, and negotiating may save you thousands of dollars.”
Home Value
The value of your Crow Wing County home fluctuates. No one ever wants to hear that their home has lost value, but the good part is if it has your property taxes should be lower. If your home has lost value and has not been reassessed properly in several years then you may be paying too much in property taxes. Lower property taxes can help cut your overall mortgage costs.
Credit Score
No matter if you are looking to buy a home or refinance a loan your credit score plays a huge role. The interest rate you will get is based on your credit score. Boosting your credit score help you cut your mortgage costs. Contact your lender to find out what type of credit score is needed for the type of loans and rates you are looking for.
Extra Mortgage Payments
If you have a little extra money to spend and looking for the ideal way to invest it consider making extra mortgage payments. Paying extra towards your current mortgage loan will reduce future interest costs and save you a lot of money down the road.
If you are looking to buy or sell a home in Crow Wing County, contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.
Bill Grunewald/ Edina Realty.
Licensed in Minnesota/ Lic # 20204156