|
Mortgage Tips: Finding the best mortgage
First: determine the mortgage product
Find the mortgage product that will benefit you the most before
you search for the
best interest rate. Many people neglect this step and end up getting
different quotes for different programs with different lenders. This can
make it quite confusing. Use this page along with our loan programs page to
determine which program is right for you. You may want to use our
free mortgage quote form to give
suggestions for mortgage loan products and then compare quotes with 5
lenders. payment,
great new program, etc. Don’t be bogged down with quotes you don’t need or
“sold” on what might seem to be a great offer. To decide which mortgage loan
product is best for you, There are several factors to consider of such as:
How long you plan on owning your home
Short term (0-5 years)
Advice: 3 to 5 year
arm or fixed rate
If you choose an adjustable rate mortgage, be
sure that you plan on moving before the adjustment becomes affective. If
your not quite sure on how long you plan on staying in your home, play it
safe and opt for a 30 year fixed rate. Right now there is not much of a
discount on adjustable rates, so you won't pay much more to for the fixed
rate. Consider a low cost option or even no cost option to maximize value for the
short term.
Long term (5 years +) Advice: Get into a fixed rate mortgage With fixed rates as affordable as they are now, you will save in the long run. You may also want to take advantage of lower mortgage rate by paying points. Don’t go for the no cost option, it will cost you more over the life of the mortgage loan. Compare mortgage quotes for fixed rates now.
Type of Income
Salary or hourly pay Advice: Get into a fixed rate mortgage. Don’t chance your payments increasing over time. Don’t go for the interest only or adjustable rate mortgage just to lower your mortgage payment. There are ways to structure a fixed rate mortgage loan that can accomplish this without having to take an adjustable or fixed rate mortgage.
Commission or self employed Advice: Home Advantage Account or Option ARM
We are not suggesting that you should take this
type of mortgage loan just because you have this type of income in itself.
These mortgage loan programs were really designed for the borrower that
needs or wants flexibility due to irregular income. These products can
really be beneficial for the borrower that will utilize it for the purpose
it was intended. Read all about the
Home Advantage Account or
Option Arm mortgage loan. When it comes to
this type of income, Our lender network excels at understanding all
factors to structure the most innovative mortgage loan options within the
industry.
Second:
Determine the mortgage loan structure Your loan structure is the way a mortgage loan is put together to include the options and benefits that are available that can be added to almost any mortgage loan such as: interest only, paying points, low cost, or no cost. There is a benefit and a sacrifice to each of these options. A mortgage advice expert will review the pros and cons of each option to identify the mortgage loan that gives you the most benefit. Use our free mortgage quote service and you'll also get all of the information for each option such as: monthly mortgage payment, the total interest paid over the life of the loan, and more informative statistics so that you can make the right choice.
Third: search for the best mortgage loan quote
Now that you know what
mortgage loan you want, the search for the best mortgage rate begins. There
are many questions to ask. Most people only ask two questions and those are:
What is your rate and what are your closing costs? These are good questions
to start, but keep asking. Here are the questions to ask each mortgage
lender or broker:
When is the
first adjustment period?
What is the
adjustment period thereafter?
What is the
index used?
What is the
margin?
Don’t be afraid to ask as many questions as you want, that’s what the loan officer is there for. If there are questions that your loan officer does not clarify then just ask one of our mortgage experts for advice.
Summary for getting the best mortgage loan
When you have a mortgage expert on your
side for un bias advice and combine that with comparing
mortgage quotes, you will come out
ahead. Experience the difference.
Use the form below to compare mortgage lenders and quotes. This search considers all factors above to bring you the best mortgage offers to you in one simple format. |