Finance Matters: How Numbers Affect Your Life
People face a lot of challenges every day, and reality bites with numbers affecting our lives from simply paying our bills online, helping in solving our kid’s mathematics homework up to the tedious process of computing for your mortgage. One of the major decisions people make is getting a mortgage or home equity loan. Finding the right home equity loan or mortgage is not easy so it is critical to take into consideration several important things before, during and after getting a loan. Remember that mortgage is not a commodity, so it is not about the rate but finding a trusted partner who can help you in navigating a complex transaction through an honest advice and a responsive support all throughout loan processing.
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 it doesn’t mean that you need to exclude the internet for your searches most especially when it comes to finding rates, calculation of potential loans and getting a sound advice. Mortgage lenders advertise on the web and newspapers, and the reasons why there are lenders quoting a higher rate might be because they are more reputable, they have higher cost structures and they provide more service. 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 highly beneficial for you to find out exactly the amount of the loan, including any upfront cost and hidden fees because these can be negotiated, and take advantage using free mortgage calculators 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. The different kinds of “junk fees” may include photo inspection fee, warehousing fee, computer fee, amortization schedule fee, appraisal review fee, financing statement fee, document preparation 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. Remember that you’re not at all obliged to agree to any last minute changes. It is totally fine terminating your loan anytime or tight there and then. 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.