Getting affordable mortgage loans with the lowest overall mortgage costs.

December 11, 2009 by kutenk
Filed under: Uncategorized 



For many people, obtaining a home mortgage may be one of the largest financial transaction they will make in their lifetime. Sometimes finding your dream home is easier than securing affordable mortgage loans itself after the housing bubble burst. Getting mortgage loans is getting more difficult with stricter guidelines, bigger down payment, lower loan limits, more restrictive appraisal and approval process, and cumbersome paperwork. Mortgage Pre-Approval now requires larger 20-25% down payment plus the additional requirement of bank statements confirming assets that will cover up to six months of mortgage payments. To get the best possible rate, you have to have a Solid Credit Score (FICO score of at least 700 or 720). Lenders are also required to adjust loan pricing by 0.5% to 2.75% of a loan’s value based on a borrower’s credit score.




In order to find affordable mortgage loans, you need to compare rates from more than one lender – from Credit unions, Commercial banks, Mortgage brokers, Mortgage companies, Savings and Loans to Online lenders. In general, credit unions offer lower interest rates, but they has qualifying factors for membership. It is important to research the different lenders and the products they offer before deciding upon one particular loan. You should ask for information about the same loan amount, loan term, and type of loan so that you can compare the information apple by apple. You should compare all the costs involved in obtaining a mortgage so that you get lowest overall mortgage costs – Interest Rates, State Fees, Closing Costs, Title Company Fees, Inspection Fees, Junk Fees ( Origination fees, Application fees, Courier fees, Inflated fees, Waiver fees). When shopping for a mortgage loan, many applicants search for the lowest interest rates only but forgot to search for other costs. Closing costs, origination fees, application fees, and other expenses vary dramatically from lender to lender.




Whether it’s a home purchase, a refinancing, or a home equity loan, you should negotiate the price and terms of mortgage. When looking for affordable home loans, you usually have the option of paying additional points (a portion of the interest paid at closing) in exchange for a lower interest rate. It is advisable to try to get Pre-Approved Affordable Mortgage Loans based on your actual income, debt, and credit history. Before applying for a mortgage with a lender, ask about pre-payment penalties and customer service interaction fee. Pre-payment penalties are fees which lenders charge when a borrower pays a mortgage off early. Some lenders charge customers for a small fee every time the customer calls to chat with a customer service representative. Shopping, comparing, and negotiating may save you thousands of dollars.

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