Buying a new home with today's mortgage rates can be one of the most exciting things you do in your life. If you have done your homework, you have calculated the cost of mortgage payments, insurance and taxes to make sure you can afford to pay for it. But did you consider paying the closing costs? Depending on your individual purchasing situation, closing costs can cost anywhere from hundreds to thousands of dollars that you may not have expected. Fortunately, you can do some things to save money on your closing costs. Follow the tips below so you can leave the deal with more money in your pocket.

Negotiate with your lenders. Many lending institutions are willing to negotiate the prices of many of their fees. If they won't negotiate, you may want to consider finding a different lending company. Find a lender who is willing to explain the various fees to you so you know exactly what you are paying for.

Ask for a Good Faith Estimate. A Good Faith Estimate, or GFE, is an estimate about how much you will be charged when closing on your new house. Rates vary between mortgage companies so you can do some research and find a company that charges lower closing costs. You can get a complete list of fees from most lenders. If they will not provide you with this, choose a different lender. With all of the competition in the mortgage industry these days, it is easy to move on to another company and still that is just as good as the last one.

Decide on a mortgage lender. You may have a long list of possible lenders and you will probably be tempted to choose the company with the lowest closing costs. However, you must also consider the company's background, longevity, reputation and its willingness to negotiate and spend time explaining the process to you. Paying a little extra will likely give you a company with better customer service and it will make you more comfortable as you go through the home buying process.

Ask sellers to share the closing costs. With the problems in the mortgage industry, it is not difficult to find someone who wants to sell their home as quickly as possible. With this type of mentality, it may be easy to find a seller who is willing to share or even pay all of the closing costs just to get out from under their mortgage. Sellers who have had their home for sale for a long period of time are often willing to pay at least some of the closing costs so they can move on and be rid of their house. Even if they are unwilling to share the costs, it never hurts to ask!

Few things can burst the excitement of buying a home more than finding out that you have to pay closing costs that you did not consider. If you are not prepared, you may not even have the money at the time to cover the fees. This may even prevent the deal from being finalized and you might have to start all over. Make sure you know how much you need at the time of closing to ensure that this does not happen to you.

If you have been thinking about buying your first home, you may want to consider doing it by April of this year. The IRS is cutting off the first-time homebuyer's credit at the end of April 2010 and you could benefit from a deduction worth thousands of dollars if you choose a home before then.

According to a report on CNN money, the $8,000 credit is still available for first-time homebuyers if your contract to buy the home is dated by the end of April. After that, you have until June of this year to close on the house in order to be eligible for the tax credit. However, due to fraudulent use of the electronic filing system, you are no longer able to file your taxes electronically this year if you want to claim this credit.

In addition to losing the option to file electronically, first-time homebuyers wishing to claim the tax credit must also fill out extra paperwork, including a process which includes a mortgage statement, proof of residency and even a copy of your driver's license. In order to get the credit, you must fill out the required paperwork and send it in this year. You can find the new documents on the IRS website (www.irs.gov) which has recently been updated to offer the newly required paperwork.

If you qualify for the first-time homebuyer's credit and you want to take advantage of the current mortgage rates combined with the tax credit, don't delay on getting your paperwork filled out and sent in. It is going to take more processing time to get your $8,000 credit than it did before due to the fraudulent misuse of the electronic filing system. You can, however, still claim it on your taxes but you will be waiting longer for your return as a result of the increased processing time.

The expiration of the first-time homebuyer's credit is likely to create a rush in the next few months to buy a home. Since it was offered in January of last year, real estate experts have said the significant tax credit has helped revitalize the market to a certain extent. According to the IRS, nearly 1.5 million families have claimed this $8,000 credit in the last year. The National Association of Realtors also expects that at least 350,000 more homes could be sold as a result of the credit.

On the other hand, the tax credit may mean a slump in home sales in the future. First-time homebuyers who were planning to buy a home in a few years are now buying homes in time to take advantage of the credit. So while the short-term effects are clear, the credit may hurt long-term sales. In addition, since the tax credit can be used as a method of putting a down payment on a home in the FHA program, there could be a risk of increased foreclosures in the future as these first-time and inexperienced homeowners go into default.

It will be interesting to see what happens with the first-time homebuyer's tax credits. We'll continue to observe the results and report them as any changes occur.

Your credit score is one of the most important numbers attached to your identity. In some cases, it is even more important than your social security number. Unfortunately, many people have a low credit score because of late payments, too much debt, or simply because of inaccurate information on their credit reports. Here are five tips you can use to raise your credit score for better mortgage rates and a better chance of getting approved for loans.

1. Check for Inaccuracies
One of the quickest ways to boost up your credit score quickly is to scrutinize your credit reports and look for inaccuracies. There are three main credit reporting bureaus – TransUnion, Experian and Equifax – and they often have different information. Get a copy of all three and go through each of them a couple times a year them to see if there are negative marks that don't belong there. If you see something that doesn't belong, contact the bureau immediately and have any inaccuracies removed.

2. Avoid Late Payments
Late payments can bring down a credit score quickly and significantly. In fact, your payment history accounts for about 35 percent of your overall credit score. That's fairly significant! Making your payments on time is also the best and quickest way to begin building up your credit again if you have damaged it. Information about late payments can stay on your credit report for up to seven years, but a track record of 12 months of on-time payments can increase your score with noticeable results.

3. Reduce Your Debt Ratio
If you can pay off some of your debt, you can raise your credit score significantly. This is especially true if your credit cards are near the "maxed out" limits. Ideally, you should keep about 60 percent of your available credit free on each card. If this means spreading your debt among several cards, then do it. The amount of outstanding debt accounts for about 30 percent of your credit score.

4. Keep Old Accounts Open
Part of your credit score is based on the average length of time that you have had open accounts. As a result, keeping your older accounts open increases that average and boosts your credit score in the short run. The length of time that you have had credit accounts for about 15 percent of your score. If you want better mortgage rates and higher approval rates for credit, don't close those old accounts unless it is absolutely necessary.

5. Plan Ahead
When applying for credit or loans, the lenders will undoubtedly check your credit score. Unfortunately, this can ding your score if it happens too often. When considering a mortgage or some other type of loan, do your research before applying with different companies. If you have to apply with more than one company, try to complete your applications within the same month. For purposes of auto loans and mortgages, inquiries are only counted as one if they are all done within the same 45-day time period.

Saving money for a down payment is often an obstacle for many first time home buyers. In fact, it may be such a stumbling block that many people just forget about buying their own home because they cannot come up with a decent down payment. There are some everyday things, however, that you can do to save money and put it towards a new home. Follow these tips to get your down payment started right away!

Quit Using Paper Towels
Paper towels can eat away at your grocery bill and cost up to $10 per month depending on how sparingly you use them. In a year, you would be spending $120 just on paper towels that get thrown away. Instead of using these, use old rags and towels to do the job that paper towels used to do. If you simply cannot do without paper towels, at least hang them over your sink's faucet so they can dry and you can use them again. It puts more money in your pocket and helps the environment at the same time.

Use Online Publications
If you added up the amount of money you spend on magazines and newspapers in a year, you may be surprised. Even if you only buy a newspaper every day at 50 cents each, that's still over $180 a year ... and that's not counting the Sunday paper! You can get all of the same information if the paper has an online edition. Many magazines also have online publications with all of the same articles and information. As a bonus, it's not taking up space in your office or house when you use online editions and you can easily save just the parts that are of interest to you.

Rent Instead of Buy
I'm talking about DVDs, of course. Most people buy DVDs of movies when they first come out and they watch the DVD one time and it goes on their shelf to collect dust. If you buy an average of four DVDs a month, that's almost $1,000 per year you could be spending on something that you will only use once and end up selling in the future for a fraction of what you paid. Instead, use Netflix or some other service and save a ton of money that you can put towards your down payment.

Turn in Your Change
If you're like most people, you have containers of change sitting around your house. Take some time each year to count that change and put it into your savings account to put towards your home's down payment. You may be surprised how much you have just laying around.

Turn Off Your Heater
Instead of turning your heater up in the winter to feel warm, take it down a few degrees and put a couple extra layers of clothing on or bundle up with a cozy blanket. You could save $50 or more a year by simply dropping it down a couple degrees and you won't even notice the difference in temperature.

Of course, just using one of these tips or a couple of them won't help you put together a sizeable down payment. But using many tips together and making some lifestyle changes will add up over time and you can jump into buying your home when the mortgage rates are at a low. We'll have more money-saving tips for you in future posts!

The average rate on a 30-year fixed mortgage dropped from 5.09% to 5.06% according to data from Freddie Mac. This is consistent with data from the BestCashCow rate tables which show average 30-year mortgage rates moving from 5.143 to 5.122%. Rates seem to vaccilating at the 5% mark as market look to see what the Fed is going to do with their mortgage backed security repurchase program. If they continue it, rates should stay low for awhile longer. If they begin to phase it out, as is expected, look for rates to continue creeping upward.

Averages though aren't actual mortgages. I like to check and see what rate is actually available. Since I live in Massachusetts I checked Massachusetts mortgage rates. Below I compared the best rate I could find on a $200,000 mortgage with 0 points:

This Week Last Week

Rate: 4.875 4.875%

Points: 0 0

Fees: $1,995 $1,995

AimLoan.com has the same deal that was available last week, a 0 point mortgage with a rate of 4.875% and closing costs of $1,058. The APR on the loan is 4.963%.

The 15-year FRM this week averaged 4.45 percent down from from last week when it averaged 4.50 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent this week, flast from last week's 4.44 percent. The 1-year Treasury-indexed ARM actually rose a bit from 4.33% to 4.39%.

Use the BestCashCow rate tables to find the best mortgage rates in your area.

Paying off your mortgage sooner than scheduled is one way to save thousands of dollars over the life of the loan. But it is also a great way to save you a ton of stress of a house payment hanging over your head as you get older. With some careful planning and thought, you can pay off your home mortgage in the smartest and most financially-savvy way possible.

1. Make Biweekly Payments

One of the best ways to pay off your mortgage faster without spending more money is by making a payment every two weeks instead of every month. Cut your monthly payment in half and pay one half ever other week. Although you are paying the same amount each month, you are stopping the interest from accruing as much as if you just send in your payment once a month. Also, you are paying 13 payments each year instead of the normal 12 if you pay biweekly.

Example: If you have a $100,000 mortgage scheduled for 30 years with a 7 percent interest rate, you could pay off the loan six years sooner and save almost $35,000 by using the biweekly payment method.

2. Make Lump Sum Payment with Bonus Money

If your mortgage agreement allows you to make large periodic payments, apply any large amounts of money you get to your mortgage. This can include Christmas bonuses, inheritances, lottery winnings, tax refunds or any other large sum of money. Depending on how much extra money you apply to your mortgage, you could save thousands in the long run.

3. Refinance with a Lower Interest Rate

If your credit is better than when you bought your home and if interest rates are low, consider refinancing your home. When you get a lower interest rate, you won't be paying as much in total over the life of the mortgage. If your financial situation allows it, opt for a shorter term mortgage rather than a 30-year one. You may need to pay a little more each month, but you will save thousands in interest and be rid of your house payment many years sooner.

4. Send More Money Each Month

If you have had your mortgage for several years, there is a good chance that you make more money now than you did when you signed the papers. Take some extra money each month from your paycheck and apply it to your mortgage. Even if it is only $50 or $100, sending this extra money in every month will ensure that your mortgage gets paid off sooner than you think!

Many people in America desire to be debt-free. A mortgage is typically the largest debt that a person or a household has. As a result, it may be a daunting bill that seems like it will never be paid off. Use the tips above to own your home outright while saving money, too!

The recent mortgage crisis has put many homeowners in a proverbial financial pickle - upside-down mortgages. An upside-down mortgage refers to a situation in which a homeowner owes more on their home than its actual market value. Because of this, refinancing an upside-down mortgage is often more difficult and it costs the homeowner more than a traditional refinance. With the following advice, however, you can refinance your upside-down mortgage without losing more money than you really need to.

1. Do some calculations. It's going to be very difficult to find a lending institution that will refinance your home if you are upside-down in your mortgage by five percent or more. As an example, if your home is worth $200,000 and you owe more than $210,000, you are upside-down in your mortgage by more than five percent. Most lending institutions won't want to take this financial risk.

2. Check the current interest rates. If you do find a lending institution that will refinance your upside-down mortgage, check the current interest rates before making your decision. The rates fluctuate and you could end up with a higher interest rate than you have right now. Depending on the difference in interest rates, you could be paying thousands of dollars more in the long run to pay off your mortgage than if you had just stayed in your upside-down mortgage.

3. Contact the federal government. There is help out there for homeowners who are in serious financial trouble. Contact the Federal Housing Administration (FHA) to see what resources you can take advantage of. For instance, you may be eligible for a second mortgage on your home which would cover the difference between your home's market value and how much you owe. As an example, if your home is worth $200,000 and you owe $220,000, the FHA may offer a second mortgage on the $20,000 difference so you can refinance the other $200,000 with a better interest rate.

4. Wait a couple years. Unless you are planning to move to another home in the near future, you might as well wait it out. The real estate market fluctuates over the years and this could just be a low point in your area. In a couple years, your home's value may go back up and you would no longer be in an upside-down mortgage. The value may even increase and you could make a profit if you waited until then to sell it. Just stay put and see what happens unless there is a reason for you to move right away.

An upside-down mortgage is nothing to be alarmed about if you are not moving. It's par for the course in the mortgage industry these days and thousands, if not millions, of homeowners have found themselves in this situation. Use some financial savvy and some patience to \"ride out the storm\" and make sound and rational decisions.