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A Complete Guide To Mortgage

Author : Ask Bill

For most families a mortgage loan might be their biggest life-time investment. This would be the simple reason, why it would be necessary to get the best mortgage loan rate. The mortgage loan is a financial product and it`s price would depend on the facts, how the potential lenders evaluate your financial status and what are the possibilities to manage with the mortgage loan. Your credit score would be the single most important factor, which would determine how much you might pay for the home mortgage loan. The three credit-reporting bureaus Experian, TransUnion and Equifax keep your credit history. If the credit report were to include mistakes, you simply pay higher interest rates. It might prove useful to ask for a free report from each agency and read it through carefully. It they include errors; it may do you good to contact them and fix the errors.
To get the best mortgage loan rate, you would have to avoid late payments at least before six months of the application. One important thing you might have to pay down would be the credit card debt, because if the debt to limit ratio is over 50 percent, you might be penalized. Avoiding new applications for credit cards might be useful as every new application of a credit card might bring down your credit score usually by about 12 points. The home mortgage loan might be the biggest single investment you and your family might make. Shopping around might be the only way to find the best mortgage loan rate.
Before you get a mortgage loan, it might also be beneficial if you checked out about the possible lenders. Usually reputed banks would be the first choice. It might prove helpful to research all possible lenders and shortlist at the least five among them. You might base your five choices on parameters such as interest rates, time periods for which the rates might be offered and the fees that might be charged. Usually, the winner would be the company or bank that would offer the lowest interest rate and who might charge you $ 1.000 or less in fees. However, it would be helpful to make sure that you also choose your lender based upon their reputation. A lender with a reputation for prompt, courteous customer service and strong ethics would be worth its weight in gold. It might also be beneficial to ask a friend or a family member who might have got a mortgage recently, as to which lender he or she might have opted for and the reason as to why they chose that lender.

It might also prove to be helpful to understand whether the lender would offer a fixed rate mortgage or an adjustable rate mortgage (ARM) or even a hybrid mortgage. A fixed rate mortgage would mean that you would pay the same rate of interest and probably the same amount of money as payments for the complete life time of the loan. Whereas, if you get an ARM it would mean that you would have to pay varied sums of payments depending upon when the rate of interest would adjust. If the rate of interest adjusts upwards, you would have to pay more and if it adjusts downwards, then you would pay less. If you get a hybrid mortgage then you might have to pay a fixed rate of interest for a certain number of years in the beginning of the loan term and then adjustable rate of interest for the remaining term.

It might therefore be prudent to get mortgage help if you run into troubled waters when you may not be able to pay your debts and might face foreclosure. There might be some programs that your lender might offer in the form of home equity mortgage refinance or home equity to help you out of the huge debts you might have incurred because of non-payment of your dues. However, you may also look at the government aided mortgage help programs to get out of a bad situation like Homeowner Affordability and Stability Plan, FHA short refinance plan etc. Each state may also have mortgage aid programs.

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Tags:   mortgage, get a mortgage, mortgage help

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Submitted : 2010-10-13    Word Count : 699    Times Viewed: 388