There are several ways to get a low cost mortgage. It will take some time, some research, and some discipline, but saving money is worth it all in the end.
Sometimes it is easier and less stressful to find your dream home AND get moved in than it is to secure financing for that home. The last time we went through a remortgage, we signed what felt like hundreds of forms. We even signed a form saying that we agreed to sign more forms, if they were needed. It seems crazy – and in some ways it is.
When you start looking around for a low cost mortgage (and you need to look all around), remember to read the fine print. There are lots of companies that are offering “low cost mortgages” that are interest only. Sure, they are low cost for a few months, or a few years, but these finance costs are going to kick you where it hurts – trust me on this. Interest only loans are NOT a low cost mortgage.
A true low cost mortgage is one that costs the least – in the end. That means you have to look at the total amount you will end up paying the lender. The choice that has the lowest bottom line will be your best low cost mortgage.
Not many people are looking in this direction, but one of the easiest ways to get a low cost mortgage is to reduce the number of years on the term. A 15 year mortgage will have a lower interest rate, a lower over all cost, but a higher payment than a 30 year mortgage. Another great benefit of a 15 year mortgage is that you won’t be in debt until after your children graduate college. You will be if you go the thirty year route.
Finding a low cost mortgage is not an easy task. Look at all your bottom lines, read the fine print, shop around, and don’t give in. The more you are willing to push yourself and your lenders today, the more you will be able to save yourself in the long run.
Kathryn Lang is a freelance writer covering the finance industry. She has written various articles on <a href="http://www.fairinvestment.co.uk/mortgage.aspx">low cost mortgages</a> and <a href="http://www.financemarkets.co.uk/category/mortgages/">mortgage news</a> in general.
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