One act you must avoid making is accepting an ARM loan simply because you are persuaded to do so.
The reason why is that lenders have a preference for ARM over fixed rate mortgages as it enables them to lend out higher sums. Of course, the higher the amounts lent, the higher the profits you make.
There exists another danger. The low rates offered at most times are introductory- they are sweeteners simply to entice the borrower- you- to grab the offer. We regularly see adverts with low ball rates advertised on the Net. The brokers know this.
Unfortunately for the borrower, the mortgage lender is bound to increase the rates to their true levels within two years leaving your purse leaner than expected. This is plain deception. Do not therefore fall for it. Even if it is not the mortgage lenders desire to increase rates, the Fed may do this for them whenever they decide to tighten monetary policy.
To avoid being fleeced, it is best you go for a fixed rate mortgage where the risk are determinable and in the long run, very beneficial.
Also, ensure you negotiate the fees of the mortgage broker. Many mortgage brokers accept 1% or half a percent more. There is no reason why you should pay much more for his service. If he refuses to reduce his fees, you can go elsewhere. It is best you make you view on this matter clear from the start.
Thirdly it is not compulsory you pay PMI. It is another deceptive act. Not paying this will save you a small but sizable amount especially if you intend top own several houses.
If you apply the above situation when buying a home, you will definitely save yourself a lot of money. Ensure you work hard on finding a reputable mortgage broker.
Hi There, Did You Know You Can Slash Your Mortgage By 50%? Never knew! Visit My Blog And Learn How Now http://www.slashmortgagepayments.blogspot.com
http://ezinearticles.com/?Shylock-Mortgage-Brokers---What-They-Hide-From-You&id=621207