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Mortgage Hacks: Save Big Now!

Tuesday, October 24, 2023   /   by Shannon Andersen

Mortgage Hacks: Save Big Now!

Title: Mortgage Hacks: Save Big Now!



Are you considering buying a home in today's high-interest rate market? It's a topic that has been on the minds of many prospective homebuyers lately. But fear not, there are savvy mortgage strategies that can help you save big on your dream home. In this blog post, we'll explore some mortgage hacks that can make a significant difference in your financial journey.


1. The 2-1 Buy-Down Mortgage


One of the first mortgage hacks we'll discuss is the 2-1 buy-down mortgage. This option allows you to start with a reduced interest rate for the first two years of your mortgage, making your initial monthly payments more affordable. Here's how it works: the seller offers a credit that buys down your interest rate by 2% for the first year and 1% for the second year. This can result in substantial savings, allowing you to keep more money in your pocket during those crucial first years of homeownership.


2. The Debt Service Loan for Investors


For real estate investors, the Debt Service Loan can be a game-changer. With this option, investors typically need to put down about 20% of the property's value. However, the key is that the property's cash flow should generate more income than what's required for the monthly payment. This means you can start building your investment portfolio while ensuring your properties are cash flow positive from the beginning.


3. Bank Statement Loans for the Self-Employed


If you're self-employed, you know that write-offs are an integral part of your finances. However, they can sometimes make it challenging to qualify for a mortgage due to lower reported income. Enter the bank statement loan. This innovative option considers your deposits instead of just your tax returns, making it possible for self-employed individuals to purchase a home.


4. Refinancing Flexibility


Working with the right lender can provide you with the opportunity to refinance your mortgage for free during the life of the loan. This can be a valuable option, especially when interest rates change or your financial situation evolves. Having the ability to refinance can help you seize opportunities to save even more money over time.


Conclusion


In today's high-interest rate market, navigating mortgages might seem daunting, but with the right knowledge and strategies, you can save big on your home purchase. The mortgage hacks we've explored here are just a few options to consider, and there may be others that align better

 
Keller Williams Realty Treasure Coast - The Shannon Andersen Group
Shannon Andersen
2686 SE Willoughby Blvd
Stuart, FL 34994
772-200-7683

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