| The excitement to own your dream house can | | | | may sound elementary but only few realize it |
| put you in the position where you become very | | | | during the processing stage of the mortgage. Be |
| impulsive in dealing with the house broker and | | | | your own advocate and ask for better deal. Do |
| mortgage company. This can result to bigger | | | | not assume that the rate posted on the listing is |
| problems later on as you start paying your | | | | final. |
| monthly mortgage. The thing is, the process of | | | | 5. You can get savings by paying your points. |
| buying a house involves gathering correct | | | | When you pay points, you lower the interest rate |
| information and careful assessment on all the | | | | down. And by lowering your interest, you will pay |
| aspects including capacity to pay the mortgage, | | | | less. However, this may only be effective if you |
| the type of house to choose, the kind of term | | | | are planning to stay at you house or sticking at |
| you need, the amount of mortgage payment you | | | | your mortgage for a long time. But if you don't, |
| can afford, the broker and lending company to | | | | skipping the points is a better idea. |
| choose, etc. Take a look of the top 10 things you | | | | 6. Examining the cost of your mortgage carefully |
| should know about house mortgage. | | | | will give you small information on how to save. |
| 1. The less you owe; the less interest you pay. | | | | Asking for a detailed list or itemized is of the |
| Getting off on the right foot will maximize your | | | | estimate cost of mortgage will tell you clearly |
| savings. Start right by not settling for the | | | | how much you will for your loan from the |
| minimum down payment that the house seller | | | | beginning of the loan to the closing cost. |
| requires. Save for your down payment early. The | | | | 7. Your broker's fee is negotiable. Brokers |
| higher you pay for your down payment, the | | | | compete against other brokers and the last thing |
| lesser you owe. And the less you owe, you less | | | | they want to happen is for a sure buyer to slip |
| interest you pay. Also, paying your mortgage | | | | out of their hands. So if you are buying a house, |
| sooner than your scheduled date is very effective | | | | do not forget to negotiate the price with your |
| too. | | | | broker. I tell you, if you are committed in buying a |
| 2. Getting approved for a mortgage doesn't mean | | | | house through a broker while playing "hard to |
| you have already owned a house. Whether you | | | | get", he or she will certainly give you discounts if |
| take the 15-year or 30-year mortgage, the case | | | | you will just ask. |
| still remains the same: your equity does not make | | | | 8. Job stability is very important. House mortgage |
| you the owner of the house yet, at least during | | | | is a long term loan and thus, must be planned |
| the first few years or even halfway on your | | | | carefully. Make sure that you have a good source |
| mortgage payment. | | | | of income during the entire period of the loan. |
| 3. ARMs or the Adjustable rate mortgage come in | | | | Otherwise, there is a good tendency that your |
| different varieties. ARMs are often understood as | | | | house will be foreclosed and you on the verge of |
| mortgage with interest that goes up and down | | | | bankruptcy. |
| every year. Take note of this: there are several | | | | 9. Credit rating affects your mortgage interest |
| types of ARMs that you need to know. There is | | | | rate. Unless you are applying for a bad credit |
| the 1 year ARM with 2/6 caps. Meaning, the | | | | house mortgage (which is a bad idea), make sure |
| annual percentage rate is fixed for the first year | | | | that you improve your credit rating first. This will |
| and may change once a year afterwards. The 3 | | | | give you advantage of getter a better deal with |
| to 1 ARM has a fixed rate for the first 3 years | | | | your mortgage company. Having a good or |
| of the term and may change at least once a | | | | excellent credit score makes you a less-risk |
| year on the succeeding years. The 5 to 1, 7 to 1, | | | | borrower and thus, the company will give you |
| and 10 to 1 have fixed APR during the first five, | | | | lower interest rate. |
| first seven, and first 10 years respectively and | | | | 10. When in doubt, seek professional help. It is |
| may change once a year after the fixed-rate | | | | okay to admit that you do not know what to do. |
| expires. | | | | Take time to seek professional help so that you |
| 4. Asking your brokers to lower down the | | | | will be guided as to what actions you should take |
| interest rate will give you significant savings. It | | | | to owning a house. |