On finding cheap mortgage

Mortgage is probably the biggest loan that you’ll ever take out in your entire life. Save money by getting the one with low interest rate.

06:33 16 July 2013

Buying your first house can be the single, most exciting moment in your adult life. However, since this is one of your biggest investments, you need to figure out the best way to find cheap mortgage. Remember, you’ll be paying this for say 25 to 30 years. Getting a cheaper mortgage will mean huge savings for you.

Below are the steps that you need to take to make this happen:

• Save bigger deposit. You’ll be able to take advantage of the lowest mortgage available in the market if you borrow less money from the bank or lending institution. Instead of putting 5per cent to 10per cent, try harder to put at least 30 to 40per cent. If you do this, banks will be more than happy to give you longer term, lower monthly fees, and lower interest rates.

 

• Pay attention to different types of fees. Some banks may offer you with lower interest rates but they will charge you higher processing or legal fees. Pay attention to these before you sign anything. Compare fees from one provider to the next until you get the lowest quote.

 

• Fixed rate. Experts suggest choosing fixed rate over variable rate for people who want to be certain that their monthly fee will not increase over time.