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 biggest decision many people make at some points in their lives 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. 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 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. Avoid dealing with interest-only loans unless you are planning to move in a short period of time, because you are not building up any equity or ownership in your home. 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 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 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.
Remember that the mortgage industry is unregulated and they are not the same as banks, so they are not playing the same rules, and there are many people being promised one thing and just end up with a different version at the closing table. You don’t ave to accept any changes in the last minute. You can terminate your loan right there and then. There are several reasons you can terminate a loan such as the loan representative is encouraging you to borrow more than what you need, overstating or understating your income, encouraging you to agree to payments you cannot afford, you’re asked to sign blank documents, and there is no clear communication.