5 Important Questions When Applying Mortgage
Some people are still being burned even after they shop around when they want to take a mortgage. If this happens to you, don´t be afraid anymore. This is mostly because you don´t have enough information about the mortgage world. If you want to apply for a mortgage there are 5 (five) important questions you should ask before you sign any mortgage.
Even though it seems simple and just another common sense, the answer for these questions can help you get better mortgage. Without wasting any time, here are the questions.
1. What is the condition of the pre-payment penalty?
If there is no pre-payment penalty, it´s great. However, more often than not, there is a pre-payment penalty in the clause. Pre-payment penalty is the money you have to pay because you pay the mortgage completely before the mortgage term is finished. Mostly, you will be able to get lower interest rate later on.
You will then want to refinance to get the benefit of the new and lower interest rate. You apply for a new mortgage and use the money to pay the old mortgage. Thus, if you are in the pre-payment agreement time, you will have to pay the penalty. Try to negotiate the pre-payment penalty time to be as short as possible. Try to aim one year or less for the pre-payment penalty.
2. What is exactly the interest rate?
This is just a common sense. However, what most people forget to do is to get the exact number of the interest rate. Normally you will get an estimated interest rate or just merely a range of it. Then, as the closing time is near, you will be charge with a high interest rate. Don´t accept this kind of answer. Try to get the exact number of your interest rate at early stage, not at the closing time.
3. What´s the hurry?
If there is a party, whether the mortgage broker or the company, is being in the hurry, you will need to be careful. Mortgage loan is not and should not be decided in a hurry. Be careful of any hidden ploy. To be safe, just change your mortgage broker or mortgage company if you sense that they are too pushy.
4. Am I able to pay even if I can´t refinance?
Although refinancing is a common thing to do, don´t expect that you are definitely able to do that. Don´t guess! If you are able to refinance the mortgage, it´s good. If not, you should also be able to pay it.
5. What is the exact closing cost?
Some mortgage broker or mortgage company charges high closing close. So, even though you get good interest rate, you will have to pay a high closing cost. Ask for an exact number of the closing cost when you shop around. Also, don´t forget to ask any other cost like underwriting cost or any other cost you may have to pay. Just ask them the exact number. If it´s too much for you, negotiate!
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Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
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** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
Even though it seems simple and just another common sense, the answer for these questions can help you get better mortgage. Without wasting any time, here are the questions.
1. What is the condition of the pre-payment penalty?
If there is no pre-payment penalty, it´s great. However, more often than not, there is a pre-payment penalty in the clause. Pre-payment penalty is the money you have to pay because you pay the mortgage completely before the mortgage term is finished. Mostly, you will be able to get lower interest rate later on.
You will then want to refinance to get the benefit of the new and lower interest rate. You apply for a new mortgage and use the money to pay the old mortgage. Thus, if you are in the pre-payment agreement time, you will have to pay the penalty. Try to negotiate the pre-payment penalty time to be as short as possible. Try to aim one year or less for the pre-payment penalty.
2. What is exactly the interest rate?
This is just a common sense. However, what most people forget to do is to get the exact number of the interest rate. Normally you will get an estimated interest rate or just merely a range of it. Then, as the closing time is near, you will be charge with a high interest rate. Don´t accept this kind of answer. Try to get the exact number of your interest rate at early stage, not at the closing time.
3. What´s the hurry?
If there is a party, whether the mortgage broker or the company, is being in the hurry, you will need to be careful. Mortgage loan is not and should not be decided in a hurry. Be careful of any hidden ploy. To be safe, just change your mortgage broker or mortgage company if you sense that they are too pushy.
4. Am I able to pay even if I can´t refinance?
Although refinancing is a common thing to do, don´t expect that you are definitely able to do that. Don´t guess! If you are able to refinance the mortgage, it´s good. If not, you should also be able to pay it.
5. What is the exact closing cost?
Some mortgage broker or mortgage company charges high closing close. So, even though you get good interest rate, you will have to pay a high closing cost. Ask for an exact number of the closing cost when you shop around. Also, don´t forget to ask any other cost like underwriting cost or any other cost you may have to pay. Just ask them the exact number. If it´s too much for you, negotiate!
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
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8:07 AM
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