Mortgage Tips: Finding the Best Mortgage

 Mortgage Tips: Finding the best mortgage



First: determine the mortgage product

Find the mortgage product that will benefit you the most before you
search for the best interest rate. Many people neglect this step and
end up getting different quotes for different programs with different
lenders. This can make it quite confusing. Use this page along with
our loan programs page to determine which program is right for you.
You may want to use our free mortgage quote form to give suggestions
for mortgage loan products and then compare quotes with 5 lenders.
payment, great new program, etc. Don't be bogged down with quotes you
don't need or "sold" on what might seem to be a great offer. To decide
which mortgage loan product is best for you, There are several factors
to consider of such as:



How long you plan on owning your home


Short term (0-5 years)

Advice: 3 to 5 year arm or fixed rate

If you choose an adjustable rate mortgage, be sure that you plan on
moving before the adjustment becomes affective. If your not quite sure
on how long you plan on staying in your home, play it safe and opt for
a 30 year fixed rate. Right now there is not much of a discount on
adjustable rates, so you won't pay much more to for the fixed rate.
Consider a low cost option or even no cost option to maximize value
for the short term.


Long term (5 years +)

Advice: Get into a fixed rate mortgage

With fixed rates as affordable as they are now, you will save in the
long run. You may also want to take advantage of lower mortgage rate
by paying points. Don't go for the no cost option, it will cost you
more over the life of the mortgage loan. Compare mortgage quotes for
fixed rates now.



Type of Income



Salary or hourly pay

Advice: Get into a fixed rate mortgage.

Don't chance your payments increasing over time. Don't go for the
interest only or adjustable rate mortgage just to lower your mortgage
payment. There are ways to structure a fixed rate mortgage loan that
can accomplish this without having to take an adjustable or fixed rate
mortgage.



Commission or self employed

Advice: Home Advantage Account or Option ARM

We are not suggesting that you should take this type of mortgage loan
just because you have this type of income in itself. These mortgage
loan programs were really designed for the borrower that needs or
wants flexibility due to irregular income. These products can really
be beneficial for the borrower that will utilize it for the purpose it
was intended. Read all about the Home Advantage Account or Option Arm
mortgage loan. When it comes to this type of income, Our lender
network excels at understanding all factors to structure the most
innovative mortgage loan options within the industry.



Second: Determine the mortgage loan structure

Your loan structure is the way a mortgage loan is put together to
include the options and benefits that are available that can be added
to almost any mortgage loan such as: interest only, paying points, low
cost, or no cost. There is a benefit and a sacrifice to each of these
options. A mortgage advice expert will review the pros and cons of
each option to identify the mortgage loan that gives you the most
benefit. Use our free mortgage quote service and you'll also get all
of the information for each option such as: monthly mortgage payment,
the total interest paid over the life of the loan, and more
informative statistics so that you can make the right choice.



Third: search for the best mortgage loan quote

Now that you know what mortgage loan you want, the search for the best
mortgage rate begins. There are many questions to ask. Most people
only ask two questions and those are: What is your rate and what are
your closing costs? These are good questions to start, but keep
asking. Here are the questions to ask each mortgage lender or broker:


What is the interest rate for this particular mortgage product?

What are the fees associated with this mortgage loan

Is there a pre-payment penalty? If yes, how long? And how much?

Do I have to lock-in in the interest rate? How long? Do you provide
proof of that lock? Is there an application fee? If so, how much?

If this is an adjustable rate mortgage, you must ask:

              When is the first adjustment period?

              What is the adjustment period thereafter?

              What is the index used?

              What is the margin?



Don't be afraid to ask as many questions as you want, that's what the
loan officer is there for. If there are questions that your loan
officer does not clarify then just ask one of our mortgage experts for
advice.



Summary for getting the best mortgage loan

When you have a mortgage expert on your side for un bias advice and
combine that with comparing mortgage quotes, you will come out ahead.
Experience the difference.



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