When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
Interest Rates Are Going Up: Tips For Saving Money On Your Next Home Mortgage
Claudia Bravo
After an unprecedented period of very low interest, the Federal Reserve is once again incrementally pushing up the prime rate. These increases have a direct impact on home mortgage interest rates, as well as some other forms of credit. For prospective home buyers, rising home mortgage interest rates can mean having to buy a less expensive home in order to meet the requirements of their housing budget.
If you are planning to purchase a home soon and are concerned about how higher mortgage interest rates will impact your plans, there are some additional ways to save money on the cost of buying a home that will help to offset them.
Use a higher down payment
The simplest way to save money on a home mortgage is always to take out the smallest loan possible. Instead of making the minimum down payment, (such as 3.5 percent on a Federal Home Association home loan) prospective home purchasers may want to consider renting for an extra year or two and saving up to put down a down payment of 30 to 50 percent, instead of a lower one. In addition to garnering a savings on each monthly principal and interest payment, using a large down payment can save you tens or even hundreds of thousands of dollars on mortgage interest over the life of the loan.
Opt for a shorter repayment term
Another way to save money on the purchase of a home is to seek the shortest possible repayment term. Like using a large down payment, opting for an amortization over ten or fifteen years instead of twenty or thirty can result in significant savings.
Base the purchase on net income
Another easy way to save money on the purchase of a home is to choose a home with a price that fits well with your net income, instead of your gross pre-tax amount. If your average annual gross income is $100,000, but your take-home pay after taxes and deductions is more like $70,000, choosing a home that is well within the affordability range for the lower net figure will make the costs of homeownership feel much less expensive.
Shop rates and terms
Applying for a home loan with a mortgage lender instead of your local bank can also result in significant savings when purchasing a home. Banks and other single source lenders are often limited in the type of loans they can offer. Mortgage brokers, as the name suggests, are able to shop for the best home loan rates and terms among multiple lending sources and programs to help their applicants save money and enjoy the most beneficial repayment terms.
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