Christine Natale | Real Estate, Lowell Real Estate, Melrose Real Estate, Essex County


Image by Andreas Breitling from Pixabay

The vast majority of homebuyers need a mortgage in order to purchase a house, and mortgages come with significant costs because they’re such sizeable loans. While there’s no way to avoid all of the costs associated with a mortgage, there are ways to save on your home mortgage. Here are three things you can do to reduce what you pay over the course of the loan.

1. Make a Sizeable Downpayment to Avoid PMI

Private mortgage insurance (PMI) is an insurance policy that generally protects lenders in the event of a default. If there’s PMI on your mortgage and you fail to pay the loan back, the insurance will reimburse the bank for their outstanding liability. 

When this insurance is required, the homeowner pays the insurance’s premiums even though the insurance protects the bank (and not the homeowner). This is because the insurance protection is for a risk that’s directly related to the homeowner. 

Whatever premiums you pay for PMI is money that you’ll never see again. The premiums aren’t applied to your mortgage balance (even though they’re sent in with your mortgage payment), and you personally will never collect on the protection.

Thus, you should avoid PMI if at all possible. The best way to avoid the insurance and corresponding premiums is to make a sizeable downpayment at closing. In most cases, banks require homebuyers who put less than 20 percent down to purchase PMI. If you put at least 20 percent down, you probably won’t need to pay for the insurance.

2. Purchase Points at Closing

Points are an option that you can purchase at closing. In exchange for buying a point, a bank will deduct the interest rate on your mortgage slightly. Usually, one point costs $1,000 for every $100,000 borrowed and lowers the interest rate by 1 percent. 

Purchasing points at closing will cost you more up front, but they’ll drastically reduce how much interest you pay over the course of your mortgage. During a 15- or 30-year span, even a small reduction in interest yields a sizeable savings.

3. Pay Off Your Mortgage Early

Of course, paying off your mortgage early is a guaranteed way to save. You’ll no longer pay interest once your mortgage is paid off, and you’ll also have a big improvement in your month-to-month cash flow.



41-43 Allen St, Arlington, MA 02474

Multi-Family

$1,299,500
Price

3
Units
3,663
Approx. GLA
GROUP SHOWING SATURDAY JULY 25th NOON. (THIS IS NOT AN OPEN HOUSE, PLEASE ACCOMPANY YOUR BUYERS)Attention Investors & Contractors. Condo conversion possibility or lucrative rental property. Rents for this area range from $3000-$3500. The owner has done most of the work. See the attached architectural plan and survey. NOT approved or submitted. Buyers need to do their own due diligence. The owner is not responsible for plans being approved. Property to be delivered vacant. Some remodeling is done, kitchen and bath on the 1st floor, hardwood, new kitchen on the 3 rd floor. Two car garage and plenty of off-street parking. Property description based on Arlington public records. Property has been occupied as a 3 family for many years and taxed as a 3 family. The owner does not guarantee the town will approve as a legal 3.
Open House
Saturday
August 08 at 11:00 AM to 12:00 PM
More Open Houses
Cannot make the Open Houses?
Location: 41-43 Allen St, Arlington, MA 02474    Get Directions

Similar Properties




41-43 Allen St, Arlington, MA 02474

Multi-Family

$1,299,500
Price

3
Units
3,663
Approx. GLA
GROUP SHOWING SATURDAY JULY 25th NOON. (THIS IS NOT AN OPEN HOUSE, PLEASE ACCOMPANY YOUR BUYERS)Attention Investors & Contractors. Condo conversion possibility or lucrative rental property. Rents for this area range from $3000-$3500. The owner has done most of the work. See the attached architectural plan and survey. NOT approved or submitted. Buyers need to do their own due diligence. The owner is not responsible for plans being approved. Property to be delivered vacant. Some remodeling is done, kitchen and bath on the 1st floor, hardwood, new kitchen on the 3 rd floor. Two car garage and plenty of off-street parking. Property description based on Arlington public records. Property has been occupied as a 3 family for many years and taxed as a 3 family. The owner does not guarantee the town will approve as a legal 3.
Open House
Saturday
August 08 at 11:00 AM to 12:00 PM
More Open Houses
Cannot make the Open Houses?
Location: 41-43 Allen St, Arlington, MA 02474    Get Directions

Similar Properties




41-43 Allen St, Arlington, MA 02474

Multi-Family

$1,299,500
Price

3
Units
3,663
Approx. GLA
GROUP SHOWING SATURDAY JULY 25th NOON. (THIS IS NOT AN OPEN HOUSE, PLEASE ACCOMPANY YOUR BUYERS)Attention Investors & Contractors. Condo conversion possibility or lucrative rental property. Rents for this area range from $3000-$3500. The owner has done most of the work. See the attached architectural plan and survey. NOT approved or submitted. Buyers need to do their own due diligence. The owner is not responsible for plans being approved. Property to be delivered vacant. Some remodeling is done, kitchen and bath on the 1st floor, hardwood, new kitchen on the 3 rd floor. Two car garage and plenty of off-street parking. Property description based on Arlington public records. Property has been occupied as a 3 family for many years and taxed as a 3 family. The owner does not guarantee the town will approve as a legal 3.
Open House
No scheduled Open Houses

Similar Properties



Buying a new home is an exciting experience. Who doesn’t love new things—and a new home at that? But a new home is also challenging and intimidating. If you have left a home that you adored then this new home has high expectations. And if it’s your first home then such an investment is a big step and can be intimidating for that reason. But one thing that can be agreed upon is the need for this house to feel like your home. Let’s look at a few simple tips for making your new house truly feel like your home.

Family Heirlooms: Have a family heirloom that has been passed down from generation to generation? These types of keepsakes could range from an afghan that a great-grandparent or grandparent had knit, various antiques, clocks, diaries and recipes. You can display recipes on a kitchen counter or you can even get creative and design custom wallpaper from the recipe cards. Grandfather clocks fit the atmosphere of home offices and formal living rooms. There are tasteful ways to add each one of these into your home and preserve the memory of these keepsakes.

Photos & Artwork: What better way to bring personality and familiarity into a home than photos of family and friends or artwork from a favorite artist or of your favorite place. A popular approach is a grid-like arrangement created on large, open walls. This is one way to display many beloved photos without creating clutter on tables or other pieces of furniture. A long wall along a hallway would be a great place to display larger photos or artwork that would run horizontally. This is especially nice for sequenced pieces such as change of season photos.

DIY projects: Add your personality to your home with DIY projects. Mason jars, glass vases, and wine bottles can be turned into beautiful home décor with only a few materials and a couple hours. Items like rope, artificial flowers, ribbon, and glitter are just a couple examples of supplies that can be used to turn those simple items into a homemade masterpiece.

Memories: Last, but certainly not least, create memories.This is the easiest and quickest way to make a house feel like a home. Things as simple as cooking dinner with your loved ones and as extravagant as starting a family are amazing memories to make. And the first time you remember something special happening in your home will be an amazing feeling. You’ll truly feel like you’ve left your mark and turned four walls into something extraordinary.

It’s crucial that you add your personal touches to your home, especially if it’s going to be your forever home. It’s the place you will spend most of your time, besides work. The tips above are just a couple examples of ways to help add your personality in the home. Be creative and most of all be genuine and your home will feel like it’s been yours forever.  




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