Needs Tips Before Getting a Mortgage Loan

[Carmel]

My husband and I are planning to buy a house. Anyone care to share some tips?

[Atticus]

Shouldn't this be under a different topic?

[Atticus]

But since it's already here, let me contribute something. There's a trick I've learned when it comes to mortgages. Its called the 20% rule. If you put cash equivalent to less than 20% of the value, the lender will feel it is taking all the risk. On the other hand, if you put in more than 20%, the lender will know that you are also putting in a risk of your own.

[Stinson]

Always read the terms of the contract.

[Marshall]

No other tips?

[Stinson]

My husband and I are planning to buy a house. Anyone care to share some tips?

give a careful thought on how you plan to repay your mortgage. Most people choose repayment loans - also called capital and interest loans - where part is paid back every month so that the whole loan is repaid by the end of its term. Others opt for interest-only loans alongside a regular stock market-based savings scheme, such as an endowment or individual savings account. In this case, the aim is to repay the whole loan at the end of its term with money earned in the savings scheme.

You also need to think about the length of period over which you need to repay the loan. Most people start with a 25-year mortgage, but if you have swapped loans or houses, it's wise to reduce the new term or you could find yourself still paying off your mortgage when you retire.

[Carmel]

give a careful thought on how you plan to repay your mortgage. Most people choose repayment loans - also called capital and interest loans - where part is paid back every month so that the whole loan is repaid by the end of its term. Others opt for interest-only loans alongside a regular stock market-based savings scheme, such as an endowment or individual savings account. In this case, the aim is to repay the whole loan at the end of its term with money earned in the savings scheme.

You also need to think about the length of period over which you need to repay the loan. Most people start with a 25-year mortgage, but if you have swapped loans or houses, it's wise to reduce the new term or you could find yourself still paying off your mortgage when you retire.

I see. Thanks.

[Carmel]

But since it's already here, let me contribute something. There's a trick I've learned when it comes to mortgages. Its called the 20% rule. If you put cash equivalent to less than 20% of the value, the lender will feel it is taking all the risk. On the other hand, if you put in more than 20%, the lender will know that you are also putting in a risk of your own.

Nice tip. I'll keep this in mind.

[Manke]

Lenders may be more liberal because they view home equity loans as relatively safe. I can’t disappear with my house or hide it if I default on your loan, so the lender has a good chance of collecting the collateral. Also, I likely to make my payments a priority.

[bemetoday]

Why some people almost always get the lowest interest rate on their home mortgage loan... and never pay too much in points or "junk" loan fees..?