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 Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 808
Location: OHIO
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Posted: Sun Dec 31, 2006 11:18 pm Post subject: How to become a smart borrower this New Year
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Hi all,
Many of you must have bought a home this year or may be managing a mortgage since the past few years. As the New Year comes by, there are changes in the housing market, the interest rates and the mortgage industry as a whole. To help you keep up with the upcoming trends, here's a list of the things that you should do to make yourself a smart borrower.
- Review your mortgage:
Check if your mortgage still fits your budget and whether you are able to manage it comfortably.
- Look before you refinance:
If you are looking to refinance, verify if there is any prepayment penalty and whether you can afford to pay it.
- Check the rate adjustment:
Check out the newly adjusted rate if you have an adjustable rate mortgage, especially the hybrid ARMs. This is because for the hybrids, rates may go up from 3% to 3.5%. This rate adjustment is known as the reset. And, for interest only borrowers, this comes out to be double the monthly payment. In this situation, refinance becomes an obvious option provided you can save in the total interest through the process.
- Avoid the minimum payment option ARM:
Think twice before you decide to make minimum payments on the Option ARM. This is because in most cases, borrowers end up paying more than they actually owe.
- Make extra loan payments:
You may think of making extra payments if you have taken a long term fixed rate loan. But do calculate whether you'll be able to make extra payments monthly, semi-annually or annually.
I hope the above tips will help you to avoid making financial mistakes and manage your mortgage better.
_________________
http://jessica.mortgagefit.com/ |
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sara
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mcole
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 808
Location: OHIO
435.63 Dollars($)
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