Michael Shotnik
Branch Manager
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FROM OUR BLOG
February 1, 2018

How to Save Money When Buying a Home

Buying a home is a big undertaking. We know it’s a big investment and can be emotionally taxing if the process has obstacles. That being said, we want to share with you some tips on how to save money when buying a home. We’re in your corner and are always working to make the process as seamless as possible and to save you as much money as possible!

Avoid PMI

We talked about Private Mortgage Insurance (PMI) a few times in 2017, but in case you missed it, avoiding PMI can save you hundreds of dollars per year! How do you avoid PMI you might be asking? There are a few ways, you can put 20% down when buying your home.  Don’t have 20% to put down? There’s the option of doing a 2nd mortgage. You can read more in our past blog here:  Remove PMI

Shorter term=less interest paid

Possibly the most popular loan term is 30 years whether fixed or ARM. The logical reason is that with a longer term, monthly installments are smaller.  Obviously, you’re going to go with the 30 year term if the 15 year monthly installments aren’t feasible. However, if they do work within your budget, you should definitely consider going with the shorter term and saving yourself additional interest paid.

Shop around for homeowner’s insurance to get the best rate

So technically, homeowner’s insurance isn’t part of your loan. But this blog is about saving money when buying a home, not just on your loan so we felt it worth including!

If your homeowner’s insurance is rolled into your escrow, then you can find a less expensive policy to get it lowered. Obviously, if your homeowner’s policy is separate from your mortgage loan, then you can just shop around to find the most affordable policy.

Buy a less expensive home, with 203(k) you can still have your dream home

Have you heard of Sierra Pacific’s new 203(k) renovation program? This is a FHA loan that combines the cost of the home with the cost of renovations and repairs. There are two different programs, the standard has a minimum of $5K in repairs with no maximum limitation, while the Limited has no minimum requirement, but has a maximum limit of $35K. If you want to learn more about this program, give Michael a call today!

Buy in a location with lower property taxes

Did you know that Arapahoe has some of the highest property taxes in the state a .72%? Adams County has the highest. Meanwhile Denver’s property taxes are .56%.  

When buying a home, everyone always preaches Location, Location, Location. Right? While we acknowledge that location is important, we feel there are many affordable places to live in the Denver Metro area without sacrificing location. Speak to your lending provider or real estate agent to learn more about Denver Metro’s property tax information.

 

Source: https://smartasset.com/taxes/colorado-property-tax-calculator

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Sierra Pacific Mortgage Company, Inc.

Sierra Pacific Mortgage NMLS# 1788. Michael Shotnik NMLS: 218281, CO License: 100017466. Regulated in Colorado by the Division of Real Estate #988320. To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.