Home Mortgage Loans-Top Tips on Pitfalls
- Date: 2007-04-25 - Word Count: 402
Share This!
If you avoid these common mistakes you will be well on your way to having done your job-finding the right mortgage for your needs.
- Don't necessarily gravitate to a FIXED RATE MORTGAGE. A perfect example is my son-in law and daughter in Las Vegas. He flies for the Thunderbirds and knew when he got to Las Vegas that it was only going to be for two years then he's move. So why pay more for something he didn't need. Take the lower rate ARM and go for it.
- PREQUALIFICATION VS PRE-APPROVAL- Know the difference and don't confuse the two. Prequalification is basically nothing. Pre-approval is going thru the whole process of applying for a loan and actually gives you useful information.
- THE TRAP-"how much can you afford"? Once you are pre-approved, some lenders will try to steer you to a bigger loan than you need. When you hear someone tell you you can afford to get a bigger mortgage I'd get my antenna up. You know how much you can afford.
- Avoid loans that have a PREPAYMENT PENALTY. If you do prepay on a loan with such a provision you may be charged thousands in penalty. So stay away in the first place.
- Avoid the 125% LOANS. There are plenty of reasons to avoid these types of loans and their variations. The temptation is huge to borrow more money than the home is worth. But to give an example in today's market, with declining values and a depressed market it wouldn't take too much for you to be in big trouble financially.
- Avoid MORTGAGE LIFE INSURANCE. Insurance is important but mortgage life insurance is an overpriced product. Other products can meet your needs more effectively.
In essence, when you get to the point of getting a mortgage don't be overwhelmed with how easy it is to get more money than you ever thought possible. It is easy. The industry makes it that way. Use your head and keep your cool. Don't be overwhelmed!
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 40 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles.
The absolute best, most up-to-date and valuable information and resources on mortgages and home equity loan matters is at LEARN ABOUT MORTGAGES
and LEARN THE POWER OF HOME EQUITY LOANS
Homeowners can get valuable FREE information about HOME SECURITY
- Don't necessarily gravitate to a FIXED RATE MORTGAGE. A perfect example is my son-in law and daughter in Las Vegas. He flies for the Thunderbirds and knew when he got to Las Vegas that it was only going to be for two years then he's move. So why pay more for something he didn't need. Take the lower rate ARM and go for it.
- PREQUALIFICATION VS PRE-APPROVAL- Know the difference and don't confuse the two. Prequalification is basically nothing. Pre-approval is going thru the whole process of applying for a loan and actually gives you useful information.
- THE TRAP-"how much can you afford"? Once you are pre-approved, some lenders will try to steer you to a bigger loan than you need. When you hear someone tell you you can afford to get a bigger mortgage I'd get my antenna up. You know how much you can afford.
- Avoid loans that have a PREPAYMENT PENALTY. If you do prepay on a loan with such a provision you may be charged thousands in penalty. So stay away in the first place.
- Avoid the 125% LOANS. There are plenty of reasons to avoid these types of loans and their variations. The temptation is huge to borrow more money than the home is worth. But to give an example in today's market, with declining values and a depressed market it wouldn't take too much for you to be in big trouble financially.
- Avoid MORTGAGE LIFE INSURANCE. Insurance is important but mortgage life insurance is an overpriced product. Other products can meet your needs more effectively.
In essence, when you get to the point of getting a mortgage don't be overwhelmed with how easy it is to get more money than you ever thought possible. It is easy. The industry makes it that way. Use your head and keep your cool. Don't be overwhelmed!
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 40 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles.
The absolute best, most up-to-date and valuable information and resources on mortgages and home equity loan matters is at LEARN ABOUT MORTGAGES
and LEARN THE POWER OF HOME EQUITY LOANS
Homeowners can get valuable FREE information about HOME SECURITY
Related Tags: mortgage, mortgage refinancing, second mortgage, mortgage company, home mortgage, 2nd mortgage, mo, mortgage rate, mortgage calculator, mortgage quote
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are
