Mortgage

QHow Can You Save Money On A Home Mortgage Loan?
AAlthough your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortest-term mortgage you can afford. On a $100,000 fixed-rate loan at 8% annual percentage rate (APR), for example, you will pay $90,000 less in interest on a 15-year mortgage than on a 30-year. You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year, $100,000 fixed-rate loan, just lowering the APR from 8.5% to 8.0% can save you more than $5,000 in interest charges. In this example, paying two points instead of three would save you an additional $1,000. If your local newspaper does not periodically run mortgage rate surveys, call at least six lenders for information about their rates (APRs), points, and fees. Then ask an accountant to compute precisely how much each option will cost and its tax implications.