A good mortgage is key to all real estate purchases.


Finding A Good Mortgage by Jowar  George

 In spite of the uncertainty of the housing market, the interest rates are still low, so finding a good mortgage is very possible. There are, however, many variables, so do you research so that you can find the right mortgage for your circumstances. It is important that you understand the ramifications of each detail of the mortgage. Mortgages often have fees, exceptions and contingencies that can surprise a buyer. You must be sure that you understand everything before you sign your name to the loan document. For example, you need to look for things like the interest rate over the entire loan period (some loans have a low interest rate during an introductory period), fees for paying ahead, interest rates if your loan goes into default and, if you have an adjustable rate mortgage, how quickly the payments can go up.


The Total Time Period of the Loan Directly Impacts Your Monthly Payment

The length of time that it takes to pay back the entire loan is called the loan term. Traditionally, 15- and 30-year fixed-rate loans were the only ones available. In today’s market, there are many more options, even up to 40-year terms. However, if you want to build equity in your home and pay off the principal of your mortgage, a shorter term is preferable. A longer loan term will lower your monthly payment, but will build your equity much slower. More of your payment will also be tax-deductible interest.  Adjustable Rate Mortgages Lead to High Monthly Payments


The most important decision you make will be deciding between a fixed rate or an adjustable rate mortgage. The interest rate and monthly payment don't change for the duration of a fixed-rate mortgage. The adjustable rate mortgage starts with a lower interest rate, but after a specified period of time, will go up or down according to certain financial indexes, meaning that your monthly payment will go up or down. Usually it is up due to inflation. Even an increase in one percentage point can raise a monthly payment by several hundred dollars, depending on the total amount of the loan. Typically, an ARM is preferable if you plan on only keeping your home for a short period of time (less than five years).

Consider Other Mortgage Options


To find the best deal, first you'll need to have a clear picture of your own financial situation and goals, how much money you have for a down payment, how much you can afford to pay out monthly and how long you plan to stay in your new home. Then, do some research and find out the different types of mortgages available that you qualify for. Traditionally, people started at their local bank or credit union. Now, most people use a mortgage broker; they have access to many different lenders and can comparison shop for you. If you think your credit has issues, a mortgage broker can help you overcome some difficulties. Using a mortgage broker will cost you more at closing, but you often save more in the long run. Finally, you can shop around for a lender on the internet. This allows you to eliminate the extra fees associated with a mortgage broker. You may want to do some internet research and then go to a bank or mortgage broker. Whatever you do, take your time and make the right decision for you and your situation.


For more info about real estate, finance and mortgages, consultants, please e-mail,  Fortyacresdev@aol.com.

Article Source: http://www.realestatearticles.com


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