Finance Matters: How Numbers Affect Your Life
In reality we all deal with numbers in our everyday lives, from simply buying our stuff in the supermarket, a kid’s mathematics homework up to the computation of your mortgage. One of the major decisions people make is getting a mortgage or home equity loan. Finding the best mortgage option is not an easy job so you need to consider several important things before, during and after getting a loan. Bear in mind that mortgage is not a commodity, it is about getting a sound advice and responsive support in the entire processing of loan and not just about the rate.
We love shopping our things online and we even pay bills and do bank transactions, but it is not a safe and reliable place to engage in loan transactions because there are many unreliable websites. But you don’t have to totally exclude the internet when it comes to your searches most especially finding rates, calculation of potential loans and getting a sound and expert advice. Mortgage lenders are no just advertising on newspapers but also on the internet, and you’ll notice that there are lenders offering higher rates because they are more reliable or they provide more service or because they have a higher cost structures. Technically, you are not building up any equity or ownership in your home with interest-only loans, so avoid dealing with these types of loans unless you are planning to move within a short period of time. It is important to find out exactly how much will the loan cost you, so you should be aware of the fees as there are hidden fees that can be negotiated, and you may use mortgage calculators free online to help you get an estimate. A good mortgage company includes all the fees and interest rates for you, and these fees may include application fee, title search, title insurance, documentation, loan processing fee, appraisal fee, underwriting, credit evaluation, points and escrow fee. There are fees that can be negotiated and they are considered “junk fees” such as amortization schedule fee, appraisal review fee, financing statement fee, document preparation fee, photo inspection fee, warehousing fee, computer fee, credit review fee, administrative fee, overly high notary fees and courier fee.
As compared to banks, the mortgage industry is unregulated and so they don’t play the same rules, and they end up having a different contract at the end. You are not obliged to accept changes in the last minute. You can also terminate your loan anytime. The possible reasons for doing this is if the loan representative encourages you to borrow more than what you need, overstate or understate your income, encourage you to agree to payments you cannot afford, you’re asked to sign blank documents, and no clear communication.