Simple Steps to Reduce Your Leisure Village Mortgage Costs
Mortgage rates may rise or fall this spring (lately they seem to be falling!)—but that needn’t prevent you from saving even more money when it’s time to structure your own Leisure Village mortgage. The underpublicized fact is that mortgage rates are only one of the factors that affect how much you wind up paying. No matter what happens to mortgage rates in 2014, here are some keys to making mortgage decisions that result in significant savings:
Tailor the term
Evaluate your budget and see whether it is possible to increase the amount of your monthly payment. By increasing monthly repayments, you reduce the term of your Leisure Village mortgage. Over the course of the loan, this can save tens of thousands of dollars.
Refinance for five years instead of two
The interest you pay on a refi loan isn’t the only cost. The origination and other fees can easily end up costing four figures. It’s a numbers game: simply calculate the anticipated savings from refinancing, then subtract the amount of the fees. The difference tells you your net savings…and demonstrates why one of the easiest ways to grow those savings is to refinance less frequently.
Change to biweekly
Changing to biweekly payments instead of monthly payment can save you more than small change. The reason is on the calendar: there are 52 weeks in a year, but only 12 months. If you make 26 1/2 payments every year, that equates to 13 monthly payments. It’s a stealthy way to make an additional month’s payment every year without really noticing it. When choosing a loan, opt for one where the bank allows you to choose biweekly payments (as long as they don’t want to charge an additional fee). Also request that the extra payments be deducted from the principle.
Improve your credit score
On this count, every mortgage guru sounds like a broken record. Although the average quoted mortgage rate may rise or fall, that’s not necessarily the rate that you pay. Your FICO score is the primary determinant of your Leisure Village mortgage rate. The difference between a good FICO score and a bad one can be significant, so get a copy of your credit card record and challenge any damaging inaccuracies. Lenders want to see a long history of paying on time with a mixed use of credit.
Mortgage rates in Leisure Village will almost certainly increase in the future because they’re still well under historical averages. But there are plenty of steps you can take to cut thousands of dollars from your ultimate Leisure Village mortgage costs. And if you are ready to buy a house in Leisure Village this spring, contact me today—I’m ready to show you what’s coming up at your price point!
Thank you to all of my wonderful clients and friends in Leisure Village who helped me achieve “Presidents Club”.
I truly appreciate all of you, and your referrals!
A very light and appealing, popular Monterey model in Leisure Village (55+)
community. Much upgrading has been done with newer dual paned windows, decorator
front and screen doors, 4 solar tuber, recessed lighting, smooth ceilings, tile
flooring and decorator faucet in kitchen, faucets and lighting in both baths,
mirrored wardrobes, insulated roll-up garage door & opener, slumpstone wall
with vinyl gate surrounding the very private patio. This home also includes
newer LG brand front loading washer & Dryer, range, stainless steel
refrigerator/freezer with ice maker, stainless microwave. All these improvements
and very clean, as well. Leisure Village offers its residents par 3 – 18 hole
golf, tennis, WII bowling, shuffleboard, horseshoes, table tennis, pool, spa,
wood shop, sewing room, ceramics shop and activities/clubs for most all
A very clean and popular Holmby II model in Leisure Village (55+) community.
This home features attractive tile in the living room, kitchen, hall, laundry
room and baths. The interior has been recently repainted, carpet has been
replaced (attractive neutral color). There are 2 large bedrooms, 1 3/4 baths,
formal dining as well as eat-in kitchen, interior laundry room and open patio
surrounded by a nice slumpstome wall. Leisure Village offers its residents par 3
– 18 hole golf, tennis, lawn chess, wood shop paddle tennis, library, sewing
room, billiards room, fitness room, pool/spa, shuffleboard, table tennis, WII
bowling, ceramics shop, lapidary shop and clubs for just about any interest.
Credit Score Vigilance Rewards Future Leisure Village CA Homeowners
Your credit score will have a major impact when it comes to the cost you wind up paying for a Leisure Village CA mortgage. A buyer with a high credit score of 750 or above will qualify for the most competitive interest rates available; but today’s tightened lending standards mean that some borrowers with scores under 600 may not qualify for a mortgage at all. And no matter what, a low credit score can mean paying an extra 3%-4% interest charge on every payment.
There is nothing permanent about a credit score. Leisure Village CA homebuyers who realize its importance—and who take early steps to improve their own—can save literally thousands of dollars.
- 1. You can’t improve your credit score until you know what you are working with. Your first step is to obtain your credit reports. They are available for free once a year from each of the three major reporting agencies: Equifax, Experian and Trans Union.
- 2. The fastest way to improve your credit score is to correct any inaccuracies. Because this takes time – anywhere from 30 days to as long as six months, the earlier you begin the process, the better. To remove items that are incomplete or inaccurate, verify the correct information using the dispute procedure on the agency’s website. The creditor has 30 days in which to validate the debt; if the credit agency does not receive a response to your claim, they are required by law to remove the entry from your report. Remember that there are three major agencies, so an incorrect item may appear on all three— and all three need to be contacted.
- 3. If you have an older credit card that you haven’t been using for a while, it’s a good idea not to cancel it; even to use it now and again, paying the balance in full. This will mean that the issuer keeps reporting information to the credit bureau, which can be valuable. A longer credit history improves your credit score.
- 4. A low credit utilization ratio measures how much of your available credit you are using. In order to improve your credit score, keep your credit utilization ratio below 20%. One way to quickly improve a utilization score is to move credit card debt onto cards with higher limits. While this will not make a difference to the amount that you owe, it will alter individual cards’ credit utilization ratios.
- 5. Consider a Personal Loan. If you have a family member or friend that you can borrow from, consider taking out a loan in order to pay down a portion of existing debt. By removing some of that debt, you can give your credit score a boost.
- 6. Moving away from being measured as a poor credit risk has the biggest impact on whether a future mortgage is approved—and how much interest you wind up having to pay. Your credit score in Leisure Village CA really matters! If you would like an introduction to a mortgage broker to begin the conversation about the home loan your current credit score qualifies you for, contact me today.