Trying to find the right mortgage is a scary situation. There are so many things to consider and where to begin is the biggest question. Fortunately there are some mortgage companies such as Halifax, that have made the DIY option possible. You can set everything from how much you want to pay a month to how long the term is. Check out some of the possibilities that you have.
Your income will be a big reason into how much your mortgage payment will be. Many mortgage lenders, such as Halifax, have an online worksheet that will help you look at everything you have coming in. It can adjust all your bills and give you a good example of how much of a mortgage you can handle.
Watch the “Fees”
Many mortgage lenders will charge you fees, besides the interest rate, to get a mortgage with them. Be careful not to get caught in a contract that has many “junk fees”. Processing fees, application fees, appraisal fees, escrow fees and prepayment penalty fees are the most popular ones that many mortgage lenders try to get by you. Many of these fees can be negotiated, but it is best to try and find a lender that does not have these fees.
The mortgage calculator is a very useful tool. You can figure out exactly how much you can afford or want to spend on a mortgage payment every month. It will take into consideration the interest rate, length of mortgage and the value of the property. You can adjust the rates to fit what you need.
Understand the Rates
There are two different types of rates a mortgage lender will have. The first is the interest rate. This is on any loan you have to take out. You can choose to do a variable rate or fixed rate.
The second one is the APR (Annual Percentage Rate). This rate is added to mortgages separate from the interest rate and can be higher than the interest rate. It is figured for the year instead of a monthly basis.
Remember that the mortgage industry is not governed by anyone except themselves. Always remember to read the fine print. Walk away if any mortgage lender tries to force anything on you that you do not want to buy. There are plenty of them out there that will give you a fair deal.