Money and Finance: Learning How Numbers Affect Your Life
People face a lot of challenges every day, and reality bites with numbers affecting our lives from simply paying our bills online, helping in solving our kid’s mathematics homework up to the tedious process of computing for your mortgage. One of the major decisions people make 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 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’re not building up any ownership or equity in your home with interest-only loans, so avoid venturing in these types of loans unless you’re planning to move within a short period of time. 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 includes all the fees and interest rates for you, and these fees may include application fee, title search, title insurance, documentation, loan processing fee, appraisal fee, 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. 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.