|Mortgage Refinance Information|
Shopping for a Mortgage, Avoid Three Common Mistakes
Buying a home or refinancing one is perhaps the largest financial transaction you will ever make in your life, so you want to be sure to avoid any mistakes that may cost you in the long run.
When you are deciding on a mortgage, you certainly don't want to make your decision by flipping a coin.
You will have to do as much research as you possibly can, so that you will understand all of the jargon the people in the mortgage industry will throw at you.
Here are three common mistakes that people make when deciding on a mortgage.
1. Settling for a high interest rate.
When you are shopping around for a mortgage, one of the most important factors is the interest rate. The interest rate will ultimately decide how much money you will be spending at the closing table and how much you will be spending in charges over the life of the loan.
The difference between a percentage and half a percentage could mean thousands of dollars over the life of the loan.
So shop around, if you speak with four different loan officers, I can assure you, you will get four different rates, obviously you want to go with the one that is the lowest.
Don't be afraid to ask questions. Ask how the rate is determined. Sometimes loan officers can make a little extra commission by raising the rate a little bit.
2. Read your good faith estimate
When you decide on a mortgage and a lender, they will send you disclosure documents, they are required to send these by law. Inside of these documents you will find a good faith estimate. This is an accurate estimate of what you can expect your closing costs to be when you go to settlement.
Read every part of this document line for line and word for word. If there is anything on there that you don't understand, call your loan officer and go over it together.
Your loan officer will most likely want to mail you these documents. This is fine. However, if you can meet somewhere to go over it together, than all the better.
But read your good faith estimate very carefully before you sign it, this could save you anywhere from a couple of hundred dollars to a couple of thousand.
3. Don't be afraid to shop around
If at any time a lender or loan officer tells you not to deal with anyone else because it may be detrimental to the loan or to your credit, they are lying. If this happens, they are trying to scare you out of doing business with anyone else.
Feel free to shop around as much as you would like. Do as much research as you can before making a decision. So when you finally do make a decision on a mortgage, you can avoid the pitfalls that people so often make.
Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.
Refinance Your Property Online
By refinancing your property online you can take advantage of competitive rates in the convenience of your home. You should consider refinancing your property if interest rates are lower, your financial situation has improved, or your credit rating has improved. Once you are ready to refinance, search for lenders' rates online for easy comparison shopping.
Home Equity Loans ? A Big Benefit Or A Big Mistake?
When the bills are piling up and there doesn't seem to be any way out, a home equity loan can seem like the answer to your prayers. Home equity loans can also be a great way to jumpstart a business or investment portfolio. However it's important to realise that in some circumstances, a home equity loan may in fact make your life a whole lot worse.
Online Home Equity Loans: A Basic Glossary
Home equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During the process, you will come across a variety of terms and acronyms. We have gathered together some of the basic terms that you come across during your home equity loan. If you have any questions about any of these terms, make sure to consult with your mortgage lender.
Home Equity Loans 101
A secured home loan differs from an unsecured loan in that the secured loan borrows against one's home as collateral, thereby reducing the risk to the lender.
Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Sav
Man has been known for continually simplifying things in his own interest. First he devised mortgages then several sub categories under it like buy to let mortgage, council right to buy, reverse mortgage. Then we devised remortgage. Then as the intricacies increased and the payment of interest and the loan amount became difficult, he devised interest only mortgage. Interest only mortgage is a very attractive term for someone who is just contemplating mortgage. Interestingly and very significantly an interest only mortgage requires you to pay the loan amount eventually. Individual savings account mortgage is a kind of interest only mortgage. Here the monthly payment is used to pay the interest and to build an individual savings account which is finally used to pay off the mortgage.
Private Mortgage Insurance Basics
Will you be asked to pay Private Mortgage Insurance, or PMI? Most lenders will require you to carry PMI if you cannot put 20% or more of your loan amount forward as a down payment. PMI protects the LENDER in case you default on your payments. PMI does not protect you, the borrower. The lender will secure the PMI policy for you, and you will pay for it. Most people choose to have PMI added to their monthly mortgage payments, but other payment arrangements are possible. The monthly cost of PMI is based on your loan amount. An approximate cost of PMI for a $100,000.00 loan is about $50.00 a month.
How To Save Hundreds A Month On Your Mortgage
When it comes to American spending habits, the sad truth is that most people don't put their financial assets to the best use. One of the greatest examples of this is the home mortgage. Surprisingly, most people fail to educate themselves about the dangers and the pitfalls of not shopping for the best mortgage. Worst still, many have not taken advantage of low interest rates that could save them hundreds of dollars a month.
Is the Inverse Mortgage a Scam? New Program Promises Mortgage Payoff inside of 5 Years
If a mortgage could be paid off in five years or less, without it costing homeowners an extra cent, why wouldn't every homeowner in America be doing it? Because they don't know, or because they're too wise? Although the former may be the case for many, I certainly hope the latter is the answer for most.
FHA Home Mortgage Purchase or Refinance Loan - Why You Might Consider Getting an FHA Loan
Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However, most people don't realize that FHA loans can also be does for refinancing. They are not only for purchasing a house.
Mortgage Sales Hit Problems
The housing market has been buoyant over the past few years, but mortgage providers and first-time buyers are both now facing a tough time. Following announcements from the Bank of England that there has been an overall decline in the total number of UK home-buyers, and a declaration from the Financial Ombudsman Service (FOS) that the number of disputes concerning mis-sold mortgage endowments has now hit record levels, it seems that mortgage lenders are facing a bleak time. Add to this the results of a new survey, by the Edinburgh Solicitors Property Centre, which shows potential first-time buyers fear that they may never get onto the property market, and you start to see a worrying picture of the housing market emerge.
Guide to Flexible Mortgages
Outlined below is a useful guide to flexible mortgages. Flexible mortgages are also known as Australian Mortgages because they usually feature something which is common in Australia - interest recalculation on a daily basis.
Finding the Best Home Improvement Loans
When the time comes to do work around the house, finding good deals on home improvement loans can be vitally important.
Finding the Best Homeowner Loans for Your Money
Looking for the best homeowner loans can be stressful, especially when there are so many different lender options to choose from.
Home Mortgage Loans For People With Bad Credit
Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success:
Cardinal Principle of Homeowner Personal Loans ? It is a Solution for Any Sort of Financial Funding
You bought a house and you were promoted to the position of a homeowner. It was perhaps the most important decision of your life. Now you are taking a loan and it is going to be a decision that will affect your financial plans henceforth. What if we join these two life changing things ? homeowner and loan? The result is 'homeowner loan'. The result is a Good loan but there is a scope for improvement. Let us join 'personal'. The result is Homeowner personal loan. Now, that is one commendable loan type.
Consolidate Debt With A Home Equity Loan
If you are a home owner who is having to borrow from Peter to pay Paul due to a mounting debt load, a debt consolidation home equity loan may be the answer. A debt consolidation loan will allow you to consolidate your high interest credit card and consumer loans into one low rate, affordable monthly payment.
How To Turn Disadvantages Of A Reverse Mortgage To Your Advantage
When it comes to a reverse mortgage, wise consumers weigh the advantages and disadvantages prior to signing on the dotted line.
How To Find A Mortgage With Bad Credit
Shopping online for mortgages ought to be trouble free, even should you have poor credit or no credit score. You can nonetheless find a bad credit lender that can facilitate you. The internet has expanded the international marketplace in a way never before possible, granting people looking for financial products such as loans unlimited choices. Whenever you shop for a loan online you are utilizing the largest marketplace in the world.
Home Equity Loans
Home equity loans are a popular way for homeowners to borrow money using the equity in their home as collateral. With this type of loan you can use the equity in your home to finance a multitude of things, from home improvements to large purchases and more. If you're considering a home equity loan you should gather information from several lenders to find the loan program that is the best fit for you.
Flexible Mortgages - Offering Relief from the Fixed Mortgage
A pension mortgage may seem lucrative at the first sight. However, they seldom are, if the customers who took pension mortgage are to be believed.
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