Money and Finance: Learning 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 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. Mortgage is not a commodity and not merely based on the rate but getting an honest and sound advice as well as responsive support in the entire process of your loan.
It is okay shopping online to buy books or sports equipment, you can also pay your bills but it is not a safe place to engage in loan transactions because there are many unreputable and unreliable websites. However in terms of information, finding rates and calculation of potential loans, you can always find reputable sites that can offer an expert 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 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 may actually include all the fees and interest rates for you, and these fees may include loan processing fee, appraisal fee, application fee, title search, title insurance, documentation, underwriting, credit evaluation, points and escrow fee. The “junk fees” include trustee fee, amortization schedule fee, appraisal review fee, financing statement fee, document preparation fee, credit review fee, photo inspection fee, warehousing fee, computer fee, administrative fee, overly high notary fees and courier fee.
Unlike banks, the mortgage industry is unregulated and they do not play the same rules, as there are many people being promised one thing and just end up having a different version right at the closing table. You don’t ave to accept any changes in the last minute. 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.