Finance Matters: Learning 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 best mortgage option is not an easy job so you need to consider 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.
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. 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 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 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. You don’t ave to accept any changes in the last minute. You can terminate your loan right 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.