Finance Matters: 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 of us make at some stages in our lives is getting a mortgage or home equity loan. When it comes to mortgage or home equity loan, it is not really easy finding the best one, so it is crucial 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 highly important to find out exactly the amount of the loan, so it is critical to be fully aware of the fees as there are hidden fees which can be negotiated, and you may also 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 are not obliged to accept changes in the last minute. You can also terminate your loan anytime. Some of the reasons why you should not pursue with the loan transaction may include the loan representative encourages you to borrow more than what you need, encourage you to agree to payments you cannot afford, overstate or understate your income, you’re asked to sign blank documents, and there is no clear communication or the rep is not responding yo your calls.