•5. Not carefully evaluating whether a fixed or adjustable-rate is the best mortgage loan structure for you.
Adjustable Rate Mortgages vs. Fixed-Rate Mortgages.
Which is better?
We just talked about getting "canned" advice when it's "best" for you to refinance your mortgage. Well, these same people will try to give you general "rules of thumb" about which kind of mortgage structure you should elect too. Once again, your decision should be made based on sound financial calculations that are tailored to your specific needs! If you just pick out the advertisement that sounds good, and choose the wrong type of loan, you may end up either paying too much now, or paying too much later.
Picking a lower adjustable rate might sound great now, but come back to haunt you in a few years time. It is extremely important for you to understand the terms and fine print that are contained in adjustable-rate mortgages.
MAKE SURE YOU UNDERSTAND THE FINE PRINT BEFORE YOU SIGN ON THE DOTTED LINE!
It's extremely important to know IF and WHEN you can "float" and "lock-in" the rates on your fixed or adjustable-rate mortgage during your financing process.
No one on this planet can predict what interest rates will do. But it's important to understand the fine print of your mortgage so you have the best advantage to lock-in your mortgage at the lowest rate possible!
I recently received this from a friend of mine that is a lender. I thought you might find it useful and informative. I'll break it up into nine sections, so please check back in a few days for the next part, or you can read all 9 Mistakes at http://www.uthomelist.com/custom1.shtmlIf you missed the previous parts please read them as well. I think you will find them informative.
I apologize I'm not sure where it came from originally, so if you have seen this before and know where it came from please let me know so I can give credit to them.
Some bankers and mortgage brokers may not be happy to hear me tell you these things. But you need to know them so you don't get unpleasantly surprised or pay too much when you finance your home
Buying or Selling Real Estate in Northern Utah? I will help you with all your Real Estate needs, whether you're buying your first home in Logan, or a cabin near Bear Lake. http://www.UThomelist.com
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