Foreclosure is a more and more common occurence in the U.S. In order to survive in the cut throat world of property ownership, it pays to shop smart for your mortgage loan. There is nothing wrong with owning a home and no one should be afraid to take this step, but getting a mortgage is probably the single biggest investment you will ever make. In this article, we'll look at ways to protect that investment..
No-one who buys a home for the first time has the cash to pay for it up-front. Virtually every home owner has to make use of a mortgage loan to facilitate this purchase. Mortgages are a long-term loan and generally run for between 15 to 30 years. Savings on these long-term loans add up substantially in the long run.
Saving money on your mortgage is important to successful home ownership. Never buy a property if you don't intend to live in it for at least 3 years or longer. The costs of moving are pretty substantial and this would eat into any profits you make, if there are any to be made. Your property has to appreciate at least 15% to make money, and this rarely happens in so short a time as three years.
Make sure you pay attention to your finances before even applying for a mortgage loan. This means seeing what you can afford, paying off high interest rate credit cards and other loans, and checking your credit report to dispute erroneous records. Make sure you have paid all of your bills on time this will increase your credit score. The better your credit rating, the lower the interest on your mortgage will be.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. A 15 year mortgage is a short time to pay off a home loan, and the interest will definitely be higher as will the repayments. The easier your mortgage is to afford, the less chance you will have of losing your home to foreclosure if you encounter a crisis.
No-one who buys a home for the first time has the cash to pay for it up-front. Virtually every home owner has to make use of a mortgage loan to facilitate this purchase. Mortgages are a long-term loan and generally run for between 15 to 30 years. Savings on these long-term loans add up substantially in the long run.
Saving money on your mortgage is important to successful home ownership. Never buy a property if you don't intend to live in it for at least 3 years or longer. The costs of moving are pretty substantial and this would eat into any profits you make, if there are any to be made. Your property has to appreciate at least 15% to make money, and this rarely happens in so short a time as three years.
Make sure you pay attention to your finances before even applying for a mortgage loan. This means seeing what you can afford, paying off high interest rate credit cards and other loans, and checking your credit report to dispute erroneous records. Make sure you have paid all of your bills on time this will increase your credit score. The better your credit rating, the lower the interest on your mortgage will be.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. A 15 year mortgage is a short time to pay off a home loan, and the interest will definitely be higher as will the repayments. The easier your mortgage is to afford, the less chance you will have of losing your home to foreclosure if you encounter a crisis.
About the Author:
Maria writes about financial matters and mortgages. She also writes in Dutch about verhoog hypotheek and hypotheek.
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