Is it worth shopping around for a mortgage? Not sure what to look for if so.?

Answer 1

Definitely. Even .25% less on your interest rate makes your payback thousands less in the end. Especially if you are going with a 30 year loan. It doesn't look bad on your credit report either. Consider closing costs at each facility, as well as interest and points. Some places will use title companies and inspectors that charge an outrageous fee, while others will let you choose who to go with, since you are footing the bill in the end. If you are a first time homebuyer, ask about programs as well. Credit unions usually require a higher down payment (10-20% of the total loan amount) but their rates are better, while bigger banks like National City or Bank of America will need less money down but may get you in other places, like early pay off fees. Some banks charge an application fee - around $50 - which is another thing to consider. Check out some of the pamphlets you can get from a realtor. They will help you out. Also talk candidly with any loan officer. They should be honest about what's what in the mortgage business. And contrary to popular belief, it does not cost your credit the 2 pts that it does for inquiries on your credit like a credit card or personal loan would. Banks don't consider shopping around for a mortgage bad, they consider it responsibility.

Answer 2

It's very much worthwhile. If you finance $100,000 for 30 years at 6%, and pay $600 per month for principal and interest, you'll pay about $215,500 overall.

Change the interest rate to 6.125% - just 1/8th percent more - and you'll pay almost $218,500. The difference in the payment will be only about $8 per month, but over 30 years, that adds up to about $3000.

If it was me, I'd also look at the lender's policy on late payments, What penalties they have if the payment is late, if they have a local office, and so forth. Can the mortgage be called if you are late? How much is the penalty if you are late? Can I make a payment to the local office, or does it have to be mailed to Topeka? Is it considered paid on time if it's postmarked by the due date, or does it have to be in Topeka by that date? Will the mortgage company likely sell the mortgage to someone else? A lot of companies do that. Your mortgage may be held by someone across town, or across the continent.

A previous person said that lots of checks on your credit record may cause your credit score to go down. It can, but just asking a bank or lender what their terms are doesn't necessarily mean they will check your credit score. You can ask for the information above without filling out an application.

Answer 3

To a certain extent it is. Even a small percentage drop in your interest rate could save you hundreds or thousands of dollars over the life of your mortgage loan. However, each time you have someone look at your credit report, your credit takes a hit. Too many hits can affect the interest rate or the amount they will lend you.

Answer 4

If you shop based on advertising, you'll find a lot of people that tell you what you want to hear, through incompetence or malicious "bait and switch" tactics. A much better approach is talk to people you trust and get referrals - ask your insurance agent, financial planner, tax professional. Then after you have a few, investigate a bit - dig into their reputation, call the BBB, the dept of real estate, check out their website, google their name. Interview like you're hiring an employee if you want to be very thorough - because you are. Then trust them and be honest and forthcoming, and if the experience is what you expect or better, reward them with your own referrals to people like yourself.

Hope that helps.

Answer 5

splendid. even if the consequences regrettably bypass properly previous the folk who made the undesirable judgements, and impact a lot else in the economic equipment -- which includes human beings that had no longer something to do with the undesirable judgements. obviously, this isn't a sturdy element. yet what to do about it isn't sparkling in any respect; my speedy restore is to inspire lenders with stricken loans to do a artwork-out deal, that may put off the due dates of better funds led to with suggestions from resets in substitute for 1 / 4-aspect bump in the understanding price. The deferred quantities ought to be further to the understanding stability, likely arising negative amortization. this ought to be accessible to everyone, no longer only a chosen few who can fulfill the bureaucrats.