Finance Matters: Learning How Numbers Affect Your Life
Everyday we face different trials and challenges and reality bites because numbers greatly affect our lives from simply paying our bills online, helping in solving our kid’s mathematics homework up to the tedious process of mortgage computation. 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. 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.
Almost everyone are so engaged online because it is more convenient shopping and paying bills, but it is not a good place in doing loan transactions as there are unreliable and unreputable websites proliferating online. But you don’t have to totally exclude the internet when it comes to your searches most especially finding rates, calculation of potential loans and getting a sound and 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. 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. There are fees that can be negotiated and they are considered “junk fees” such as amortization schedule fee, appraisal review fee, financing statement fee, document preparation fee, photo inspection fee, warehousing fee, computer 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. Remember that you’re not at all obliged to agree to any last minute changes. 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.