When discussing money saving home building tips, certain ideas automatically come to mind, while others involve hidden costs most people don’t think of. For more information on money saving home building tips and other topics be sure to download our 98 page free book on home planning, and read the other articles on this site.

Top Six Money Saving Home Building Tips

Money Saving Home Building Tips Number One: Save on Interest
Interest rates are low right now, but interest is still a significant factor in the cost of your home. Over the course of an average 30 year loan, the cost of interest will be roughly equal to the entire cost of your home. In other words over 30 years you pay double for your home. Interest is the single most expensive element in the cost. People don’t think of it though, because they are focused on how much they can qualify for.

• A 15 year loan will save you over half of the interest costs.
• Make extra payments, which apply directly to the principle, and take years off your loan.
• Don’t borrow as much, and build a smaller home.
• Use savings rather than so much borrowed capital.
• You should shop extensively to find the lowest interest rate.
• Clean up your credit before applying for a loan, in order to get the lowest rate.
• Take points on a loan to lower your interest rate.
• Make the largest down payment you can.

Money Saving Home Building Tips Number Two: Save on Energy Efficiency

Energy savings are extra money in your pocket to help make house payments. Saving on energy helps the home pay for itself. Insulation is becoming the most important feature in a home. Closed cell insulation or Insulated concrete panels with five inches of insulation are the key to minimal power bill. Also consider including solar panels into your construction plan. Building a smaller home also saves on energy.

• Smaller homes are more energy efficient
• At least 5 inches of dense closed cell insulation
• 6 inch thick stud walls in traditional construction
• Insulated concrete panels with 5 inches of polyurethane
• Radiant barrier insulation system in the attic
• Triple glazed windows
• Weather stripped doors that seal well
• Incorporate solar panels in the construction
• Attach your solar energy system into the grid for added income.

Money Saving Home Building Tips Number Three: Saving on Construction Costs

When saving on construction costs, remember to never cut corners on the actual structural integrity, and don’t let your home builder do this either. Check behind the contractor as necessary to insure your home is build durably and with sufficient lumber. Saving on durability is not saving at all. There are other ways to save on construction which do not compromise the structure.

• Build a smaller more space efficient home.
• Avoid luxury plumbing fixtures. Stick with Basics.
• Don’t include a pool, spa or other luxuries, unless you really plan to use them a lot.
• Select cheaper floor coverings, counter tops and cabinetry.
• Have a contractor build a shell, or kit and finish the interior yourself.
• Install your own cabinetry from a home improvement store.
• Build smaller and add on later. Check with zoning, and subdivision rules to make sure this is possible on your lot. Choose a floor plan that would lend to this idea.
• Consider incorporating used shipping containers for big savings.
• Do as much of the work as possible yourself.
• Be your own contractor and hire subcontractors as needed.
• Choose a reputable builder to insure no nonsense quality.

Money Saving Home Building Tips Number Four: Size

One issue that comes up over and over in lowering costs is square footage. Extra and unused square footage costs money in many ways. First it costs more to build, then it costs more to furnish. After the home is built, the extra cost, costs even more in interest, and also to heat and cool useless space.

Money Saving Home Building Tips Number Five: Smart Design

The efficient use of space is very important to consider. Efficient kitchens for example must be carefully planned down to where you will keep the spoons. This is far more important than having twenty different possible silverware drawers to choose from. How large of kitchen you need depends on lifestyle. Families who cook a lot and cook together will need a larger kitchen than a small family with one person who does all the cooking.

Family size determines the size of a home at least somewhat. How much you entertain also impacts the need for more kitchen and living space. Remember to consider the potential for some lifestyle change over the years when planning as well. Great rooms are more versatile than separate rooms for dining, kitchen and living areas. Extra baths are very costly. Include only the baths you need and keep your fixtures fairly standard. Don’t scrimp on closet space though. Big closets are important to housekeeping and the overall satisfaction you get from your home.

Money Saving Home Building Tips Number Six: Green, Salvaged and Nonstandard Materials

It is possible to save money by using salvaged and non standard materials. Look online for ideas, and then shop salvage supply stores, flea markets, remnant carpet outlets and other low cost markets for materials and ideas. Talk to contractors who remodel upscale homes as well. They may have deals on materials that are of a better quality than you’d normally consider, and only slightly used. Use your imagination to save money on materials and furnishings.

Saving money on your home is easy if you consider all the factors and options involved. Become familiar with those little known, small salvage businesses in your area. Finding low cost materials can help your budget a lot, especially if you are working from a shell, kit or doing most of the work yourself. Ask others about money saving home building tips and shops as well, to get the lowest possible price on a top quality home.

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