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Serving the Darmouth college community

Where To Get The Cheapest Mortgage

The decision to buy a home may be a really big one to make, but it gets tougher when you try figuring the best way to finance your dream house. Through the years, mortgages have evolved to the point where you don’t need any down payment from needing to have a 50% down payment. Knowing what criteria is required through doing your research is important in helping you get the cheapest possible mortgage. Know The Market A basic knowledge of the market is essential. Being able to determine what the average rates are through doing your research and tracking what the rates have been for the past few months is crucial. You’ll be able to figure out what a fair and “good” interest rate will be. Interest rates will determine what your monthly payment will be in the future. As an example, if you get a mortgage of $150,000 at 7 percent paid over 30 years, the monthly payment would be $1000. If the rate reduced to 6 percent it becomes $100 less. Check Your Credit Before you apply for a mortgage, ensure your credit is at its best. The best mortgages go to those with the best credit scores. Want to get good mortgage and interest rates? A FICO score in the 700s will do it for you. There are ways to improve a score that’s on the low end, e.g. limit the number of cards you apply for, pay down debt and ensure you pay credit cards on time. Shop Around Different providers of mortgages have different criteria for their products, rates and fees. You should check out different providers if you are going to get the most affordable mortgage for you. Several companies give a GFE i.e. Good Faith Estimate for free, so you can get a good idea of what their fees, closing costs and rates are. You’ll be able to write off mortgage on interest on your taxes if you itemize. This is one of the perks of having your home. Instead of taking a standard deduction, itemizing on Schedule A makes it possible to write off the entire interest paid in a year. To qualify, you have to meet other IRS requirements e.g. your home is used as collateral for mortgage. At closing, the points you pay may be lender fees such as appraisal costs or prepaid interest on the loan. Provided points are standard practice in the community you are in, it’s possible to deduct prepaid interest points in your closing year. It is, however, not possible to deduct more points than homebuyers are charged by lenders. With the IRS, taking five points for a big tax deduction is a no-go if the norm is one point. You will be able to still take the deduction even if the seller sweetens the deal.
Dartmouth Properties Dartmouth Properties serves the Dartmouth college community. We specialize in rental properties, condos, duplexes, and single family homes. Click here for more information on how we can help you find the home or rental property of your dreams.