By Mark Thompson, Bloomberg NewsA mortgage is a financial investment.
And if you have a mortgage, you can afford to take on more debt.
But if you don’t have a home loan, there’s a good chance you can save on your mortgage interest.
Here are some ways to get started on your home loan without a mortgage.1.
Pay off your loan at the beginning.
It’s tempting to borrow more to pay off your mortgage, but a bigger risk is the cost of refinancing, or refinancing to a lower interest rate.
For many borrowers, this can be a better choice.
To make sure you’re paying off your house loan in full, pay off all your principal, interest, and any remaining payments, such as mortgage interest, on your house before you pay off the mortgage.2.
Pay down your loan before it’s due.
It may sound like a great idea, but many homeowners don’t realize it can be costly.
If you owe money on your loan and have no way to pay it off, refinancing may be the best option for you.
The longer you wait to refinance, the more you will pay on your interest, fees, and principal.3.
Don’t wait until your house is ready.
Most mortgage servicers offer a discount on your first payment if you pay your first $250.
The difference between that and the $1,000 down payment is the interest rate, which can be significantly lower.
A $1-million down payment can pay off a $10,000 mortgage in 10 years.4.
Keep your mortgage rate low.
Mortgage rates vary from state to state, and the Federal Reserve does not set a national mortgage rate.
If your rate is lower than what the Federal Deposit Insurance Corp. offers, you may want to look into refinance with a lower-interest lender.5.
Use a short-term loan.
A short-sale is when you take a loan at a lower rate than the market rate and put your money into it.
It’s a way to lower your interest rate and get a loan faster.
For example, if you borrow $200,000 from a short seller, you could put that money into a 10-year, 5.5% mortgage.
It could be as low as $50,000 or as high as $100,000, depending on the lender.
Short-sale mortgages have a lower credit rating, so if you go long, you’re less likely to lose your home.