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Receive the best mortgage deal possible By Justin Hunter

Chances are that if you are utilizing a mortgage to finance your property, you are finding out that the additional costs and fees you originally thought would be a couple hundred dollars, are adding up fast, especially if you are purchasing in an expensive state such as California.
You may feel that once you agree to a mortgage policy that you are in a car dealership as the associated fees begin to pile up but you do not know if they are necessary or if the lender is trying to make an extra dollar or two off you. The lender may not necessarily be practicing predatory techniques but you may be able to save money by having more knowledge of what fees can be lowered or eliminated.
The article, “Ways To Save Money On Your California Home Mortgage,” written by Terry Parker and posted on sandiegomortgage.com, provides vital tips on how you can have more confidence in knowing you did not over pay on your already pricey mortgage.
Knowledge really is power in the real estate and mortgage industries. The more you understand the different processes and fees, the more able you will be to ensure you receive the best overall policy. So, the best thing a prospective mortgage borrower can do to save the most money is to do lots of research and practice some of these tips.
The first thing you need to do is determine that you are choosing the right mortgage for your household situation.
“When it comes to the total cost over the duration of the loan, the 30 year fixed rate home mortgage is the most expensive, with one exception. If you plan to live in your home for the length of the loan, it is the best home mortgage. As you shop for mortgages, take into account how long you plan to be in your home. Let that length of time determine the type of loan you get. As a general rule of thumb for shorter periods of time, choose an adjustable rate loan, and for longer ones choose a fixed rate.”
Just be extra careful when borrowing an adjustable rate loan because these policies often offer low initial monthly payments for the first three to five years but will then adjust to much higher payments thereafter. Make sure you will be able to account for those higher payments in the future.
Next, you will want to negotiate with your lender. Don’t be shy.
“There is absolutely nothing wrong with asking your lender for a better interest rate or to eliminate some of the fees associated with your home loan. Consider the fees for which the lender makes no money: appraisal, inspection fees, processing fee, title fees, private mortgage insurance, and credit report fees.”
These fees are most likely not negotiable because the lender does not profit from them but everything else is fair game for negotiating.
You also want to avoid paying private mortgage insurance at all costs.
“You are required to pay PMI when you make a down payment less than 20 percent of the amount of the loan. The amount you pay in PMI could be used to make extra home mortgage payments or invested in a high yield investment account. If you are already paying PMI, watch your equity closely and drop the insurance once you have 20 percent equity in your home.”
Since most of us do not have the financial resources to come up with the necessary 20 percent down payment, a piggyback mortgage which finances that 20 percent may be a viable option, especially since the interest on the piggyback mortgage should be much lower than the monthly cost of the PMI.
“There is no sense in paying extra money in interest and other home mortgage costs unless you absolutely must. By using just one or two of these methods you can save thousands or even tens of thousands of dollars in the total cost of your mortgage.” An LEI mortgage coach will be able to provide you with more essential information to save the most money possible when borrowing your next mortgage.

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