If you’re thinking of purchasing a home, then there’s a good chance you’ll be applying for a mortgage to finance it. Well, unless you have gone through the mortgage application process, then there’s still much you probably want to know about it.
In this article are four of the best-kept secrets about mortgages.
Mortgage rates are sometimes very volatile
Don’t be fooled that rates change very slowly every time. History has shown that these rates may make surprising leaps or drops. In just a single year, rates can move up by more than two percent.
For this reason, it’s best to take advantage of a friendly mortgage rate in Phoenix from lenders such as VIP Mortgage when you have the chance to. You never know.
The difference in rates between lenders can be significant
The best advice someone can give you as you look for a mortgage is to check out different lenders first. Incredible as it seems, two lenders in the same city can have rates that differ by as much as $60 per month for borrowers with the same credit score and loan repayment period.
Considering you’re going to be repaying the loan for decades, that’s a huge difference.
Paying a little extra can make a massive difference
A hundred more bucks for your monthly installment may sound like a lot of money, but you’ll be surprised by the difference it makes in the long run. Why? When done consistently, it can shave up to five years off your loan repayment period. That saves you a lot in terms of interest.
Your mortgage can be sold
Many borrowers are surprised and unsettled to discover that their original lender sold the mortgage to a different lender. Actually, there’s nothing to be concerned about, as mortgage selling is quite a common practice. Your original lender ensures that your mortgage is still serviced, as should have been the case.
Knowing as much about mortgages as possible is a good idea. Not only do you make the right decisions when buying a home, but also sound more knowledgeable around your friends.