img
img
MyMoneyHelp home
Sign up for our newsletter!
Name:
Email:

corner cor cor
cor
MyMoneyHelp
Credit Reports
Personal Loans
Mortgages
Insurance
Debt Help
Credit Cards
Banking
Education Center
cor
cor cor co
corner cor cor
cor
Education Center
Banking
Credit Cards
Credit Reports
Debt Help
Insurance
Mortgages
Personal Loans
Glossary
cor
cor cor co
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Top ten mortgage choosing tips
Mortgage Basics:
Top Ten Tips for Choosing a Mortgage

Choosing a mortgage can be of the most intimidating experiences in life. This is especially true if you are a first-time buyer and know little about mortgage basics. There are two main parts to choosing a mortgage:

Here are top ten tips to consider when reading about mortgage basics and choosing a mortgage.

Mortgage basics tip 1: Consider your personal circumstances.

When considering mortgage basics, and in order to choose a mortgage that fits you, start by thinking about your lifestyle and individual needs and wants. Are you:

  • A first time buyer?

  • Buying to lease?

  • Already a home-owner looking for a home equity deal?

  • Self-employed?

  • Looking for a better interest rate?

  • Looking to remortgage?

  • Earning big bonuses but have a small basic salary?

Mortgage basics tip 2: Understand the different types of mortgages on offer.

It is vitally important to know the basic benefits and disadvantages between various mortgages. The main types of mortgages rates include fixed and variable rates, capped rates, repayment, or interest-only mortgages. Each one has its pros and cons and will appeal to different borrowers at different stages in their life.

Mortgage basics tip 3: Do not borrow more than you can afford.

Like many borrowers, you may be tempted to overstretch your budget to get the house of your dreams. There are very real dangers to this, so it is essential that you set a realistic budget.

Mortgage basics tip 4: Shop around.

There is generally a great deal of choice and competition between mortgage lenders. Make the effort to contact and discuss your requirements with a select handful of mortgage lenders. Carefully look through every mortgage package on offer. Take your time to decide which mortgages would best suit your lifestyle and budget.

Mortgage basics tip 5: Do not accept the first mortgage on offer.

Do not be lazy by taking the very first mortgage that is offered to you. There is no denying that choosing a mortgage can be a complex and time-consuming affair. However, when you shop around, you will find there are significant savings to be made in mortgages, possibly amounting to thousands of dollars. If you accept the first mortgage on offer, you could lose out on a considerable amount of money in the longer term.

Mortgage basics tip 6: Do not be tempted by low starting interest rates.

Many borrowers are attracted to low interest rates when deciding how to choose their mortgage or mortgage lender. These deals are normally not as good as they appear. Many mortgage lenders lure you in by offering low headline interest rates. However, the majority of these low interest deals are inflexible and may tie you in for the long term. When choosing mortgages, it is much better to calculate how much a loan will cost by considering the Annual Percentage Rate (APR).

Mortgage basics tip 7: Beware of exit or redemption penalties.

Nowadays, many lenders impose heavy penalties if you wish to:

  • Repay your mortgage earlier than initially agreed

  • Exit from the mortgage and move to another lender or deal

These penalties can range from one month's interest to a shocking 12 month's interest in some cases. Avoid mortgages which carry harsh penalties.

Mortgage basics tip 8: Beware of mortgages with overhanging lock-ins.

Some lenders impose a penalty, called an overhanging lock-in, if you switch deals or lenders after a special deal interest rate has expired. These mortgages tie you in; you may save money initially, but you may be paying out more in the long run.

Mortgage basics tip 9: Consider extending your mortgage period.

Choosing a mortgage with a longer than average term can have advantages, especially for first-time buyers. Traditionally, borrowers have been advised to repay their mortgage as soon as possible. However, house prices are so high these days that it is becoming more acceptable to have mortgages with terms of 40 or even 50 years.

Mortgage basics tip 10: Always read the small print!

Before signing on the dotted line, always remember a mortgage basics essential: read and understand your mortgage lender’s terms and conditions thoroughly.

Check out the best mortgage providers

 
 
 
 
 
 
 
banner

 
 
© MyMoneyHelp.com. All Rights Reserved.    Sitemap | Newsletter | About | Contact | Terms of Use | Privacy | Online Coupon Codes

Valid XHTML 1.0 Transitional

img