As a homeowner, you are always looking for ways to save money and cut costs. The same can be said about insuring your homeowner. Use 7 ways to save money as a homeowner, including a mortgage refinance. (iStock)
As a homeowner, you are always looking for ways to save money and cut costs. This may be even more true due to the disruption in the economy and the widespread unemployment caused by the coronavirus pandemic.
If you are looking for ways to reduce corners and reduce homeowner costs, you should use an online market such as Credible. Credible can share tips that will save you money and time. Start by comparing mortgage rates to see if you can lower your costs.
How to save money as a homeowner
Look at these seven ways to save money as a homeowner, including taking advantage of the current low mortgage refinancing rates.
- Use refinancing figures
- Look at your home insurance policy again
- Increase your deductible
- Shop around
- Consider bundle policy
- Try to improve your credit score
- Make sure you are not underinsured
1. Make use of refinancing figures
Interest rates have remained low for almost a year due to COVID, which has fueled significant mortgage refinancing activities. However, as current political and economic factors develop, Freddie Mac reports a rate fluctuation. Nevertheless, the Federal Reserve expects rates to remain relatively low for some time, as the economy continues to rebound.
Your Credible’s free online tool to easily compare multiple mortgage lenders and see the pre-qualified rates within three minutes.
Current rates (from 11 February 2021):
- 30-year fixed interest rate bond (FRM): 2.73%
- 15 years FRM: 2.29%
- 5/1-year adjustable interest rate bond (ARM): 2.79%
You may want to consider refinancing if your current home loan has high interest rates and monthly payments that exceed your monthly budget. Either you want to switch mortgage companies, get rid of your private mortgage insurance (PMI), or use the shares in your home to finance a major purchase or remodeling project.
To refinance at the best rate, you need a share of at least 10-20% in your home, a steady income and a good credit score. Refinancing closing costs can range from 3-6% of the loan amount. That means you can pay as much as $ 6,000 on a $ 200,000 refinance. To learn if a mortgage refinance is best for you, use Credible’s mortgage calculator to see how much you can save.
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2. Study your home insurance policy again
Covering the cost of home insurance comes with owning a home. But because home insurance premiums have risen nearly 6% since 2018, according to the NAIC 2019 Insurance Department’s resource report, homeowners are looking for ways to save their insurance costs and save you money over time.
Many insurers offer discounts. You may be eligible for a discount if you keep your policy with the same insurer for at least three years, pay your premium annually (instead of quarterly), upgrade windows and insulation, add a security system, fire extinguishers and smoke detectors, or by energy do effective upgrades.
Credible can help you choose your insurance. Click here to compare multiple home insurance quotes within minutes by Credible’s partners to save you money.
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3. Increase your deductible
While you should never have a deductible amount higher than you can afford out of pocket, it is not uncommon for your premiums to drop when you increase your deductible. By increasing the amount of $ 1000, you can save as much as 25% on your premiums, according to the Insurance Information Institute.
4. Shop around
If you take advantage of the discounts you have available through your current insurer, you can go to other insurers to make sure you get the best rate. It’s easy to compare mortgage lenders and get a quote from Credible within minutes.
But the cost is not the only thing to consider. Make sure you compare apples to apples and get the same coverage as in your current policy. If you then find a better rate, then see if your current insurer can pick it up or beat it.
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5. Consider the bundle policy
Most insurers offer better rates for homeowners and car insurance. In general, if you bundle your insurance policies with the same insurer, you probably have only one deductible, which may, but may not always, be lower than what you did not combine.
If you want to see what kind of insurance options there are, go to Credible. Credible makes it easy to compare quotes, saving you time and money.
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6. Try to improve your credit score
In most countries, your credit score affects the cost of your homeowner’s insurance. How much you will save varies from one insurer to the next and is often a factor in determining your rates. It is not uncommon for the higher your insurance costs, the higher your insurance costs.
Add your estimated credit score to Credible’s free online tools to determine what refinancing rates you can qualify for on a new home loan.
7. Make sure you are not underinsured
Although you want to explore all available options to lower your homeowner’s insurance policy, you do not want to reduce costs so that you are underinsured. There are no standards for covering homeowners, but if you are underinsured, you could be liable for a substantial amount if your home suffers major damage or you need to rebuild.
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