The present foreclosure crisis in the US is indicative of the fact that things can go wrong. That's why shopping smart for a mortgage loan is a vital survival technique in this market. If you are in the market to buy a home, you don't want to lose it to foreclosure. Property presents a valuable long term investment and in this article we'll see how to keep that investment.
It is very rare that anyone buying property is able to purchase it outright. This would mean a very large cash investment, and who has access to substantial cash amounts? Mortgages are a long-term loan and generally run for between 15 to 30 years. It is for this reason that it is important to realize any savings you can.
Three years is the absolute minimum period of time you should live in a house before selling it. If you don't intend to do this, don't buy! 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.
Before you start looking for a mortgage product, work on your finances. Get a credit report and dispute anything you don't agree with. Pay off your credit cards if you can, because they have high interest and paying them will save you a great deal of money in the long term. Ensure that all bills are paid on or before time as this influences your credit record. A good credit score substantially increases your chances of obtaining lower interest on a mortgage.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. This is because the longer the loan period the lower both the interest rate and the repayments on the mortgage loan will be. Do all this and you should be fine even if you find yourself in a crisis. The more savings you get on your mortgage the better.
It is very rare that anyone buying property is able to purchase it outright. This would mean a very large cash investment, and who has access to substantial cash amounts? Mortgages are a long-term loan and generally run for between 15 to 30 years. It is for this reason that it is important to realize any savings you can.
Three years is the absolute minimum period of time you should live in a house before selling it. If you don't intend to do this, don't buy! 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.
Before you start looking for a mortgage product, work on your finances. Get a credit report and dispute anything you don't agree with. Pay off your credit cards if you can, because they have high interest and paying them will save you a great deal of money in the long term. Ensure that all bills are paid on or before time as this influences your credit record. A good credit score substantially increases your chances of obtaining lower interest on a mortgage.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. This is because the longer the loan period the lower both the interest rate and the repayments on the mortgage loan will be. Do all this and you should be fine even if you find yourself in a crisis. The more savings you get on your mortgage the better.
About the Author:
Gerald writes about the financial market and telecom. He writes about voice over IP, voip and voip bellen.
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