Mortgage Tips
Deciding upon your mortgage choices can be frustrating. Here are the 3 terms you need to know to help evaluate what is best for you!
Term
- A mortgage term is the length of time it takes for your loan to be paid off. It can range from 5 years to 30 years. The longer term you choose the smaller your monthly payment, but the longer it takes to be "mortgage free" and the more interest you will end up paying. An important tip - you might find that the shorter the term, the lower the interest rate.
Rate
- The "rate" is the interest rate on the money you are borrowing. Your credit rating is directly related to the interest rate the lender will offer you. Other considerations that affect your interest rate are, how much money you are able to put down, how much money you make and the value of the home you're buying. Rates also vary depending on lender, and lending program.
Cost
- Costs typically refer those little extras that lenders like to charge. They can include closing costs and other incidentals.Rarely you'l see offers for "No Closing Costs". These costs usually include an appraisal, recording fees on documents at the registry or deeds, attorney or notary fees and the like. Watch carefully for "extra" fees and don't be afraid to ask questions, and negotiate!
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