First Mortgage Loans

1. Although your monthly payment may be higher, you can save tens of
   thousands of dollars in interest charges by shopping for the shortest-term
   mortgage you can afford. On a $100,000 fixed-rate loan at 8% annual
   percentage rate (APR), for example, you will pay $90,000 less in interest on
   a l 5-year mortgage than on a 30-year mortgage.
   
   
2. You can save thousands of dollars in interest charges by shopping for the
   lowest-rate mortgage with the fewest points. On a 15-year, $100,000 fixed-
   rate mortgage, just lowering the APR from 8.5% to 8.0% can save you more
   than $5,000 in interest charges. On this mortgage, paying two points instead
   of three would save you an additional $1,000.
   
   
3. If your local newspaper does not periodically run mortgage rate surveys,
   call at least six lenders for information about their rates (APRs), points, and
   fees. Then ask an accountant to compute precisely how much each
   mortgage option will cost and its tax implications.
   
   
4. Be aware that the interest rate on most adjustable rate mortgage loans
   (ARMs) can vary a great deal over the lifetime of the mortgage. An increase
   of several percentage points might raise payments by hundreds of dollars
   per month.

Mortgage Refinancing

1. Consider refinancing your mortgage if you can get a rate that is at least
   one percentage point lower than your existing mortgage rate and plan to
   keep the new mortgage for several years or more. Ask an accountant to
   calculate precisely how much your new mortgage (including up-front fees)
   will cost and whether, in the long run, it will cost less than your current
   mortgage.

Home Equity Loans

Be cautious in taking out home equity loans. These loans reduce the equity
that you have built up in your home. If you are unable to make payments,
you could lose your home.


Compare home equity loans offered by at least four banking institutions.
In comparing these loans, consider not only the annual percentage rate
(APR) but also points, closing costs, other fees, and the index for any
variable rate changes.

You can often negotiate a lower sale price by employing a buyer broker
who works for you not the seller. If the buyer broker or the broker's firm also
lists properties, there may be a conflict of interest, so ask them to tell you if
they are showing you a property that they have listed.


Do not purchase any house until it has been examined by a home inspector
that you selected.

Do not limit your rental housing search to classified ads or referrals from
friends and acquaintances. Select buildings where you would like to live
and contact their building manager or owner to see if anything is available.


Remember that signing a lease probably obligates you to make all monthly
payments for the term of the agreement.

Home repairs often cost thousands of dollars and are the subject of frequent
complaints. Select from among several well established, licensed
contractors who have submitted written, fixed-price bids for the work.


Do not sign any contract that requires full payment before satisfactory
completion of the work.

Consult Consumer Reports, available in most public libraries, for information
about specific brands and how to evaluate them, including energy use.
There are often great price and quality differences among brands.


Once you've selected a brand, check the phone book to learn what stores
carry this brand, then call at least four of these stores for the prices of
specific models. After each store has given you a quote, ask if that's the
lowest price they can offer you. This comparison shopping can save you as
much as $100 or more.