Loans: 10 Mistakes that Most People Make

Finance Matters: 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 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. Bear in mind that mortgage is not a commodity, it is about getting a sound advice and responsive support in the entire processing of loan and not just about the rate.

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. 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 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 highly beneficial for you to find out exactly the amount of the loan, including any upfront cost and hidden fees because these can be negotiated, and take advantage using free mortgage calculators 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 “junk fees” include trustee fee, amortization schedule fee, appraisal review fee, financing statement fee, document preparation fee, credit review fee, photo inspection fee, warehousing fee, computer 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. It is totally fine terminating your loan anytime or tight 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.