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Release Date: July 2008

SAVING MONEY ON A MORTGAGE

Everyone is looking to save money these days, and mortgage shoppers are no exception. Whether you’re buying a house or looking to refinance a mortgage, the valuable guidance in the new Saving Money on a Mortgage package from the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board (FRB) is just what you need. You’ll understand all the options available and be prepared to find the most affordable mortgage.

When you’re in the market for a mortgage, shop around. It’s a product, just like a car or the patio set you’ve been eyeing, so you should make sure you’re getting the best price you possibly can. To do this, arm yourself with some new vocabulary words. Points, fixed-rate or adjustable-rate loans, private mortgage insurance—all of these things are charges associated with a mortgage that can greatly affect how much you end up owing. Use the glossary in the FRB’s Looking for the Best Mortgage, included in the package, for more words to know as you research.

With your new-found vocab, start contacting lenders. You can now confidently ask about all the costs associated with the mortgages they’re offering. Keep track on a spreadsheet or use the worksheet included in the package. Writing down information such as percentage rates, origination fees, and closing costs from each lender will help you compare apples to apples—and there are a lot of apples to keep track of! Then pull out your best bargain-hunting skills and negotiate with those lenders. Don’t be afraid to let them know you’re looking for the best deal, whether or not it’s with them. But don’t let yourself be talked into buying more house than you can afford. Know how much you can spend monthly and find a loan that allows you to stay within that limit for the life of the loan.

After your best efforts, if you find yourself unable to keep up with payments, you do have options. The New Climate for Mortgage Borrowers, a free bonus from the FDIC included in this package, has plenty of helpful suggestions, including restructuring or refinancing your loans and how to find a reputable housing counselor. You’ll even find tips to help you avoid mortgage foreclosure fraud and credit repair scams.

Your home is probably the biggest purchase you’ll ever make. Armed with the information in the Saving Money on a Mortgage package, you’ll be well-prepared to invest with confidence and protect your investment if anything goes wrong. There are three easy ways to place your order:

  • Send your name, address, and a check or money order for $1.00 to Saving Money on a Mortgage, Pueblo, Colorado 81009;

  • Visit www.pueblo.gsa.gov/media-promo.htm to place your order online and to find links to these and hundreds of other Federal publications you can read or print for free.

  • Or call toll-free 1 (888) 8 PUEBLO. That’s 1 (888) 878-3256, weekdays 8 a.m. to 8 p.m. Eastern Time and ask for the Saving Money on a Mortgage package. Have your credit card handy.

Get even more information and take advantage of online government resources at www.USA.gov and www.GobiernoUSA.gov—your official English and Spanish web portals to the Federal government.

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  • Please check with Rebecca Fulcher if you plan to use this release after October 15, 2008.
  • To receive New for Consumers releases by e-mail, send a request to rebecca.fulcher(at)gsa.gov or call (202) 501-1794.

GSA #2879

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