A Mortgage Should Be Rewarding; Not Confusing

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No matter how much that you believe you are prepared to sign on for a 30 year mortgage,

there are still some questions that you need to fully understand before you make that commitment. There are numerous FAQ pages that you can frequent, but in many cases they are full of jargon that only a broker could understand. How about answering the basic questions in pure and simple English, right here for you? Let me clear up some of the confusion if I can. First, I think it is quite obvious, but I think I need to explain exactly what it is. It is a loan that someone takes out when there is interest in buying a piece of or several pieces of property. This could be a business or a residential piece of property. Now that that is covered, let me move on.

You need to decide what type of mortgage you are going after.

There are several different types available, depending on the circumstance. There is a variable rate, where the interest rate adjusts up or down depending on the market. There is a cap rate as well, cash back and even a deferred interest loan. However, the most common loan is called a fixed rate. This is the type of loan where the payment will not fluctuate regardless of the current market. If you are wondering how much that you can borrow in a loan, there is a formula to this as well. A basic home mortgage will be roughly 75% of the value of the property that is in question. There are even those select few lenders that will lend 90% of the value of the property, however expect very strict repayment plans associated with those lenders. The cost of a loan can and will vary depending on who your lender is. Generally a lender will charge a setup fee just to prepare paperwork for you. That can range from a very low fee to an extraordinary one, so watch the bottom line numbers in those cases. There are other fees assessed as well; if you miss a payment, are late, default, and in some cases even an early payoff fee. Often time’s people wonder just how long one lasts, because in some cases it seems like forever! In a typical situation a loan can and should be repaid in 20-25 years. There are some lenders singing a 30 year loan. However there is a benefit to paying off a mortgage earlier. It not only reduced the period of payments but also the interest that is paid in full over the loan. What of the dreaded default? This is something that in many cases can be avoided just by simply staying in contact with your lender. Many times the lender will tack on late fees and penalty charges for being late. In the long run it is better than losing your home for not staying in contact. Now, if you go an extended period of time with no payment the likelihood of an eviction, is very real.

The most important thing to remember when going into a mortgage;

is that it is a long-term commitment. This will most likely be the largest purchase of many people’s lives, so make sure you are ready for it. Make certain you have a reliable contractor on call that can handle all of your small to large repairs. I personally would suggest Truly Noble Services, Inc. based out of Garland, TX. They can be easily reached at toll-free 855-898-2455 or on the web at http://trulynobleservices.com/ They are available to help repair, replace or rehab after you have signed onto your mortgage.

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