The biggest tip of all is to know that there are no tricks to securing the lowest possible mortgage rates with the lowest possible fees. Only assiduous and diligent effort will reward a home loan borrower with the optimal rate and fee structure for his or her mortgage. Dealing firmly but fairly with a mortgage broker is another critical strategy, or trick, if you will, for securing the optimal mortgage rate without succumbing to the hidden profit maximizing strategies of the mortgage bankers and brokers.
More Tricks to Assess Hidden Mortgage Fee Risks Include:
- Searching for the lowest published mortgage rates both online and via third party rating agency.
- Playing banks and brokers against on another.
- Insisting on the lender spelling out all hidden fees or hidden closing costs upfront and in plain English.
- Being as forthright and upfront as possible with your specific financial situation while keeping your weaknesses that are not required to be disclosed to a minimum of exposure.
- Checking back often at this resource for additional mortgage fee tips and tricks.
Hidden Risks in Obtaining a Mortgage
Often, your mortgage banker or real estate agent won’t take you through the exercise of ascertaining whether it’s cheaper to rent or own. Even a 4% 30-year mortgage usually involves hundreds of thousands of dollars in interest payments, taxes, and fees. You might be better off renting a nice apartment with a lower monthly payment and investing the rest of your savings over a mortgage into index funds with a passive management philosophy.
When it comes to mortgage fees, it never hurts to double and even triple check the fees you are assessed at durning each and every step of the lending process. For instance, your mortgage banker or broker can collect fees originating your loan as well as servicing it. Why Reviewing Your Mortgage Fees Is Important … Continue reading
In assessing amortization schedules for a 30-year mortgage, it’s important to realize the power of annual percentage interest as opposed to simple interest. Remember – in the best scenario you’ll be charge 4% every year of your loan, which can and does add up to hundreds of thousands of dollar in interest payments to your … Continue reading
5 year adjustable mortgage rates have sunk to previously unbelievable lows. Down around the 2% level, this nearly “free money” rate could be attractive for the right sort of borrower, and, always extremely dangerous for the undisciplined and under-capitalized. For those with good liquid cash reserves, and appetite for risk, and no plans to truly … Continue reading
Many people lookig to qualify for a mortgage and in California and elsewhere have vaguely heard of The Truth in Lending Act – more formally known as regulation Z. Yet – this consumer protection mechanism is only murklily understood by many consumers and even financial insititions.
What, exactly is a trust deed in California? It’s very similar to a mortgage, but offers a few additional advantages in terms of ease and security that mortgages don’t afford a borrower. Trust deeds are actually the main financial instrument through which home loans are secured in the state of California. Below, find some basic terminology on what a trust deed in california means and how a trust deed in california works in theory, practice, and beyond.
Ever wonder what the rights of a landlord are with respect to his or her tenants? A tenant has a whole range of responsibilities with respect to a landlord and the property the tenant inhabits. Those prospective landlords looking to take out a mortgage and lease property back to tenants would fo well to inform … Continue reading
There a dizzing array of tax implications to consider when closing a real estate transaction, and a real estate agent should pay careful consideration to his or her clients needs where it comes to taxation advice.
The California homestead exemption law entitles folks with a mortgage lien against their domicile to protect a certain amount of equity in the event of a forclosure by a bank or other lending institution.
Indeed, a mortgage is a lien, but a lien encompasses a much wider range of financial encumbrances that can attach to a particular piece of real estate or real property. Liens can be placed on a piece of real estate for a variety of circumstances like property taxes, special assessments, construction improvements, other debts, and more.
We've previously written a post about orange county mortgage brokers – and that post is helpful in its way. However, we wanted to go back and re-iterate that choosing an orange county mortgage broker is not an easy proposition. The Orange County Mortgage Broker and banker scene should be evaluated with a gimlet eye and … Continue reading