Focus on Long-Term Mortgage Costs When Looking to Save Money, GetSmart.com Shares Advice

When home buyers consider their mortgage, typically they only think about the monthly payment they'll be making. After all, it's easier to focus on and budget for what's coming out of your bank account each month as opposed to what is coming from your savings over the next 30 years.

Charlotte, NC (PRWeb) February 8, 2007 -- When home buyers consider their mortgage, typically they only think about the monthly payment they'll be making. After all, it's easier to focus on and budget for what's coming out of a bank account each month as opposed to what is coming from savings over the next 30 years.

But loan experts encourage home buyers to look at the big picture: How much a mortgage - including interest payments and the fees associated with the mortgage - will cost over the long haul.

So what are some ways to reduce the long-term costs? GetSmart.com shares the following advice:

1) Consider the mortgage itself. Are you sure this is the lowest rate you can get? Have you gotten offers from several lenders to ensure the one you end up with is the best? Offers can vary from lender to lender, so be sure you've shopped around for the best deal.

2) Examine the fees. Fees or points added onto your mortgage by lenders can substantially increase your mortgage costs. It helps to compare offers using the annual percentage rate (APR) because that number includes both the mortgage and the fees.

3) Pay down your mortgage. By making extra mortgage payments, you can not only reduce the principal, but the interest that goes along with it. Note that, in order to make this work for you, you must have a mortgage that allows prepayments without penalty.

4) Shorten the term of the mortgage. If you know this is the house you plan to stay in for a significant amount of time, look into a shorter mortgage term. While a shorter mortgage means higher monthly payments, you actually save money in the long run.

For more ideas on reducing your long-term mortgage costs, visit www.getsmart.com.

About GetSmart®
GetSmart is a leading financial services marketplace that offers borrowers access to a range of home loan products from a network of more than 250 lenders. Consumers who visit the site at www.getsmart.com fill out a short and simple form to be matched with up to five lenders.

GetSmart is owned and operated by LendingTree, LLC, which is part of IAC Financial Services and Real Estate, an operating company of IAC (NASDAQ: IACI), which also owns or operates LendingTree Loans sm, LendingTree Settlement Services, LLC, RealEstate.comsm, Domania®, and iNest Realty, Inc.

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