A tiny tweak to your mortgage's Annual Percentage Rate (APR) makes a tremendous difference over its lifetime. It can amount to savings of tens of thousands or even hundreds of thousands of dollars. There are many ways to save money on your mortgage, no matter your APR, and our real estate agents want to help.

Klamath homes for sale are some of the most desirable in Oregon, so it only makes sense for you to save as much money as you can on your mortgage. Every dollar you save allows you to reinvest more of your hard-earned dollars on improving your home to make it more convenient and beautiful.

Once you're locked into a mortgage offer and make a bid on a house, it might seem as if the total cost of your mortgage loan is a "done deal." But there are still ways to save on your mortgage before you make your offer after it's accepted and once you move into your new home. Let's take a closer look at some of them now:

• Compare Many Lenders Before You Choose
  The power is in your hands when choosing a mortgage lender. Even though lenders follow the prevailing market APR as a guideline, that doesn't mean they're all the same. It's wise to check with three, four, or even more mortgage lenders before you choose.
  
  
• Improve Your Finances
  Even a slight improvement in your overall credit score could be enough to majorly impact a mortgage. Don't hesitate to pay down high-interest balances before you take the next step on your homebuying journey. Save up where possible to make a bigger down payment.
  
  
• Make Bi-Weekly Mortgage Payments
  Consider the huge difference a small change in your mortgage payment schedule can make. By paying your mortgage bi-weekly instead of monthly, you'll end up with an "extra" payment that goes exclusively to the principal. That can cut years off your mortgage.
  
  
• Make One Extra Mortgage Payment a Year
  Making bi-weekly mortgage payments can sometimes be challenging because it needs to be set up with your mortgage lender. They may add fees or have other rules that will make it less attractive. But you always have the option of doing one additional mortgage payment per year and getting all the same benefits.
  
  
• Drop Your PMI as Soon as You Qualify
  Private mortgage insurance is extra insurance that protects the lender in case of default. It's usually used when a home is purchased with a down payment of less than 20%. PMI is a relatively large direct cost to you, but you can drop PMI without penalty once you reach a certain amount of equity in your home.
  
  
• "Recast" Your Loan
  Most people have heard that you can refinance your loan, but they probably haven't heard about recasting. As you recast your loan, you get a new mortgage payoff date but do not initiate an all-new loan. What this means in practice is that you end up with a lower monthly payment. Recasting can be done every few years.
  
  
• Check Your Refinancing Options
  Refinancing a mortgage loan is the main way to reduce your APR. It's done when the prevailing market APR is lower than it was when you first got your mortgage. Even if the APR hasn't gone down very much, it may still offer you significant savings, especially if you used a government-backed mortgage loan like an FHA loan.

Contact us to find out more or get started.