General Information - Tips for New Homeowners Looking to Save Money



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Tips for New Homeowners Looking to Save Money

For many Americans, purchasing a home is one of the greatest investments they will make in their lifetime, but it can be financially difficult in the beginning. Yahoo Homes offers some money-saving tips that can make becoming a homeowner more affordable.


For many Americans, purchasing a home is one of the greatest investments they will make in their lifetime, but it can be financially difficult in the beginning. Yahoo Homes offers some money-saving tips that can make becoming a homeowner more affordable.

1. Decide what type of mortgage is best - Those looking to spend less each month may want to opt for a 30-year mortgage, as it typically provides the lowest interest rate. However, this should only be done with the understanding that more money will go toward covering interest over time. Those looking to save long-term may want to opt for a shorter term, such as a 15-year loan, to spend less on interest and pay off your home quicker to avoid additional payments. Selecting a fixed-rate mortgage loan can also provide more stability, unlike adjustable-rate mortgage loans that can fluctuate depending on the market.

2. Compare home insurance rates - As a homeowner, you will have additional housing market expenses that you may not be familiar with as a previous renter. This includes investing in an adequate home insurance policy that is not only affordable, but that also provides ample coverage for your investment. By comparing estimates for insurance, the source says you can determine which type of coverage is best for your home and what will provide the most protection without overspending. There are some upgrades to your home that can help lower the costs of coverage for your house, including installing a security system and taking other precautionary steps, such as purchasing weatherproof windows and doors.

3. Avoid having to pay PMI - Lenders may require you to purchase private mortgage insurance, which provides them financial protection should you fall behind on your monthly payments. However, this is typically only required if you are unable to make a down payment of at least 20 percent, so saving up and making the largest down payment possible can be helpful in ensuring you don't have to pay an additional amount each month. If you are unable to do so, Yahoo Homes notes to understand that you won't have to pay PMI after earning a certain amount of equity in your house.

4. Buy new so you don't have to make improvements - While purchasing a newly constructed home may seem more expensive, you won't have to shell out money for immediate home improvements. Many buyers turn to foreclosures and short sales to save more money upon closing, however, doing so almost guarantees that you will need to hire a contractor to complete major repairs before the home is move-in ready. New homes are built to modern standards, so there is less of a chance an inspector will pick out necessary improvements. When hiring a handyman or contractor for small projects or upgrades, make sure they aren't projects you could turn into do-it-yourself fun to save money.

5. Lower other monthly bills - You have likely dealt with paying multiple utility bills, though many renters may be accustomed to having some basic utilities included in their monthly rent. When having services turned on in your new home, be sure to inquire about current promotional plans and consider bundling what you can in an effort to save more money. For optimal savings, don't fall into the trap of purchasing luxury upgrades, like excess movie channels or overpriced internet, when your typical browsing won't require the highest speed.

For consumers interested in new homes for sale in Florida, it's important they know how to move through the process. GL Homes can help consumers know what the latest trends are for homes in Florida so they know exactly what they want in their new home.