|
|
|
|
Below, you'll
find extensive information on leading Cooper Landing Relocation articles and products
to help you on your way to success.
What You Need to Know About the Rates, Points and Fees on Your Mortgage
By John R. Blakefield
When you first apply for a loan, three of the most of things you want to entertain are the interest rates, points and fees that are associated with each specific you are considering. These three things can greatly affect the amount of money you have to pay in turn for borrowing the money to purchase your house.
Depending on your credit history, income, expenses and long term debt, you can either qualify for either a prime or sub-prime loan. A prime loan means you have a decent financial situation and can qualify for a large amount of money, at a good interest rate, with the normal points or fees. A sub-prime loan is for those with not such a good financial situation. Often, sub-prime loans come along with higher interest rates and more points and fees that are paid in turn for the lender having to take on a higher risk client.
The interest rate is what is charged in turn for the lender allowing you to borrow the money. It is determined by starting with a base index rate, and on top of this are percentages that represent certain risks, such as default and inflation.
The APR or annual percentage rate is the total amount multiplied by the principal to determine the interest amount paid every month. Obviously, the lower the APR, the less money you have to pay in interest. Every month, you pay some money towards the principal, or the actual amount you borrow, and some towards interest. As the principal decreases, you pay less in interest, because the principal amount is less.
Points are usually one time fees that you pay to the lender
or broker for the mortgage. It is usually a percentage of the total principal amount borrowed. The more points you pay upfront, the lower the interest rate usually is. You have to be careful, however, and always do the calculations for each scenario because even though you are paying a lower interest rate, you could pay more money with the points than the interest rate a little higher.
Additional fees may include application fee, loan processing fee, appraisal fee, underwriter fee, lender fee, attorney fees, broker fees, credit report fee, document preparation fee, and all other fees that may have been included with the specific mortgage. Your specific may not include any of these, but you must ask your broker or lender exactly what fees are included in the mortgage.
Expect to get a detailed itemized report of all the breakdowns of the rates, points and fees. This way you know exactly where your money is going and why. This is the best way to avoid loan fraud. If there is an item you don't understand what the service is, or why it is there, you have a right to ask and get an explanation. Do not agree to anything that you are not clear on.
By understanding all the terms of the loan, you can see exactly how much the will cost you. Be careful of being charged too many fees and points that are necessary for your situation, especially if your credit history is average or above. Work with lenders and brokers you have gotten referrals from and believer are working in your best interest. Use these tips to get the best rate you can!
John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: www.scourtheweb.com/mortgage/
Additional
Resources
|
Additional
Resources
|
We strive to provide only quality articles, so
if there is a specific topic related to mortgage that
you would like us to cover, please contact us at any time.
And again, thank you to those contributing
daily to our Cooper Landing Relocation website.
- Americas Watchdog Offers Assistance For Frozen Or Devalued Cash Equivalents, ARS & Suggests Do's & Don'ts For A Wild 2009 Economic Ride
Americas Watchdog's Wall Street Fraud Watchdog is warning that from an economic standpoint, 2009 will make 2008 look like a walk in the park. In the strongest terms possible the Wall Street Fraud Watchdog is encouraging all US, or international investors, who were defrauded with auction rate securities, and or failed or frozen cash equivalents, to not sit on their hands, waiting for the government to come riding into the rescue. According to the group, " in the case of smaller banks or stock brokerage firms, it will not happen." The group is also offering to help and or assist Bernard Madoff victims that may have a possible SIPC claim. "2009 absolutely terrifies us, we are looking right down the barrel of a global economic meltdown, so if you have failed or frozen ARPS, Schwab Yield Plus, TD Ameritrade Reserve Yield Plus, or any other problematic cash equivalent call us, and we will try to help put you on a track to get your money back, before its too late." US or International investors who were duped into buying auction rate securities, failed or frozen cash equivalents can call the Wall Street Fraud Watchdog anytime at 866-714-6466 or visit their web site at Http://WallStreetFraudWatchdog.Com (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1831204.htm ]]>Americas Watchdog Invites Residential Construction Defect Attorneys Nationwide To Join In Its Construction Defect Initiative
Americas Watchdog & its Homeowners Consumer Center are about to begin what will be a year long nationwide construction defect initiative, aimed at assisting condominium homeowners associations and homeowners in larger residential sub divisions, in identifying common construction defects in their homes, or condominiums, and then doing something about it. According to the President of Americas Watchdog, "Most homeowners in condominiums or larger residential subdivisions have no clue as to whom to call, and or what to do, when they discover a common construction defect. We are about to change that in a dramatic way. We want the best construction defect law firms in each state to join with us, so we can address the problems to the benefit of the homeowners associations, or homeowners in larger sub divisions, in their specific states." The Homeowners Consumer Center has been blasting national homebuilders for years, over issues ranging from undocumented workers building our nations houses, to low quality workmanship." According to the group, "2009 is the year we start going after homebuilders in each state, for selling innocent consumers defective housing. We will do this with the help of the best construction defect law firms we can find in each state." Interested construction defect law firms are welcome to call the Homeowners Consumer Center anytime at 866-714-6466 or visit their web site at http://HomeownersConsumerCenter.com (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1833104.htm ]]>Concrete-Driveway.org: New Website Explores Everything Related to Concrete Driveways
Newly launched website, Concrete-Driveway.org is dedicated to informing consumers about the many benefits and advantages of installing a concrete driveway. This educational site covers project tips, design ideas, types of concrete surfaces, typical installation costs, photos and more. (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1825834.htm ]]>New Vista Realty Arizona Wins Prestigious Broker Award for Creating Housing Opportunities in Foreclosure Market
New Vista Realty Arizona owners Gail Buck and Sara Stevens pride themselves on creating housing opportunities for minorities and first-time buyers by helping buyers see opportunities in the midst of crisis. Recently, the two were awarded for their efforts with the New Vista Asset Management Award as the top brokers in the network. (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1762154.htm ]]>32 Investment Duplexes to be Built In Upscale Community North of Dallas
With the combination of a great location, great amenities, and a stable local housing market, the duplexes at Grand Heritage in the Collin County community of Lavon promise to deliver exceptional returns to real estate investors looking for a turnkey investment opportunity. Veteran duplex builder Glen Anderson expects to have the first completed units available for delivery to investors by May 2009. (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1825874.htm ]]>Casino Hotels Rely on Service and Experience from Revenue Management Providers
Service and Support are Essential to Maximize Potential of Revenue Management Systems (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/therainmakergroup/letitrain/prweb1826614.htm ]]>FuelNet Monthly Reveals Four Email Marketing Trends for 2009
January issue also offers advice for achieving optimum results (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/Email_marketing_tips/FuelNet/prweb1831024.htm ]]>Homepath Products LLC Launches New Web Site
Homepath Products LLC, designer and producer of patent-pending eXapathTM conduit systems, activates its new Web site. The Web site provides easy access to valuable information for homeowners, architects, builders, electricians, and electronic system contractors (ESC) about low voltage residential cabling solutions. (PRWEB Jan 7, 2009)
Read the full story at http://www.emediawire.com/releases/2009/01/prweb1833094.htm ]]>
|
|
