Question:

How to use mortgage tricks to save money?

Answer:

If you are this quick and daring borrower that challenges their lender and refinances twice a year, you must be aware of some mortgage tricks that come pretty handy and help save cash.

Popular Mortgage Tricks

Given that currently the life of mortgage loans varies between 3 to 5 years, it is much better to take an Option ARM and avoid 30-year fixed rate mortgages. Thus, borrowers have the flexibility of making low payments, and pay off principal only when they are comfortable with it. Thus, when the time comes to make fully amortizing payments, they could have paid part of the principal or refinanced to better terms. Also, do you always need a long term protection? It is expensive.

Another mortgage trick is using your securities as collateral for a mortgage. This can help avoid the 20% down payment and still provide 100% financing. Only a few lenders are practicing this on a regular basis, though.

There are a whole lot of tax deduction mortgage tricks you may need a tax professional to help you through. A purchase and a refinance have different tax benefits. Owner occupied and investment properties also differ when applying interest tax deductions.

Probably one of the greatest mortgage tricks is using a rate modification instead of mortgage refinancing.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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