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31 Common mortgage mistakes smart people avoid

Author: Jessica Bennet
Community Mentor
Ask Jessica
Posted on: 17th Oct, 2005 08:56pm
Obtaining a mortgage loan is not a very easy task. Rather it is a very intricate and time-taking process. Importantly it is a very significant move in your life.

It is often seen that out of the excitement of owning your dream home, you commit mistakes. You also make mistakes because of your ignorance on mortgage as well as because of the complexities involved in the mortgage process. Sometimes these wrong steps taken by you prove out to be very costly. You may have to incur huge losses and even may have to face the negative consequences of foreclosures.

You can make mistakes while taking out a fresh mortgage loan, while opting for a second mortgage loan and while refinancing your original mortgage loan. Take a look at 31 common mortgage mistakes in total.

12 Home-buying mistakes to avoid

Owning a home is a symbol of personal achievement and is very self-satisfying too. But it is not a cakewalk. In fact, your dream of owning a home can turn out to be your financial nightmare because of your wrong steps while making the purchase. Have a look at 12 common home-buying mistakes so as to shield yourself from these slip-ups.

10 Big second mortgage mistakes to stay away from

Once you have taken out a mortgage loan and have acquired some equity in your home, you may become complacent at the time of taking out a second mortgage loan. Have a look at these 10 second mortgage slippages so as to better equip yourself to cash in on your home equity.

9 Refinance Mistakes and how to avoid them

The allurement to enjoy better rate of interest may instigate you to plunge into refinancing. But your imprudence and hasty decision may put you into serious troubles too. Know about 9 common refinance mistakes so as to safeguard yourself while replacing your original loan with a new one with better terms.

If you however have proper knowledge about these common mortgage mistakes that many home buyers often make, it becomes comparatively easy for you to make the right mortgage move.
Posted on: 17th Oct, 2005 08:56 pm
when you go for a mortgage, you're making a big financial decision. and, you need to be smart enough to choose the right offer and know how it can help you financially.

it's not unusual if you can't make the right comparison, if you misjudge terms and conditions, or borrow more than you can afford. with a wide range of options available, it's a hard task to find the one that's best for you.

however, if you're aware of the mistakes many homeowners usually make, you won't take the wrong step. so, whether you're a first time buyer or one who's looking for a refinance or second mortgage, take a look at the common mistakes, which could otherwise cost you a lot of money:
financial what are the most common business startup mistakes people make in your opinion it doesn t mean it is doing smart business about starting a small business and avoid startup mistakes.

[External links deleted as per forum rules. Thanks.]
Posted on: 11th Oct, 2010 03:52 am
Qualifying for an I/O Loan is very tough, because you have to show 24 months worth of assets, plus you have to qualify in terms of income showing you can afford the Principle and Interest payment on your loan.
Posted on: 11th Oct, 2010 08:56 am
Don't pay someone to try and negotiate a loan modification for you, when you can call the bank yourself. All they really know is how to rip people off. The only person you're going to want to bring into this situation is an experienced, certified short sale Realtor to help you negotiate a short sale if you decide to go that route.
Posted on: 18th Oct, 2010 12:25 am
I used this Dead Simple Do-It-Yourself System and saved my home --->
Posted on: 09th Nov, 2010 01:14 am
Mortgage brokers say they are confounded at the number of clients who apply for a mortgage, wishing their credit enables them to qualify for financing. Before you even think about trying to get a mortgage, obtain copies of your credit report plus your FICO credit score
Posted on: 18th Nov, 2010 11:22 am
Based on what I've read, here are some of the most common mortgage mistakes:

Entry Fees - which varies from lender to lender. Mortgage Insurance - it varies significantly from lender to lender and can range in thousands of dollars. Ongoing Fees - there are some lenders who charge up to $500 yearly for some loans. Early Exit Penalty Fees - paying out a loan within the first 5 years can cost hundreds if not thousands of dollars with some lenders. Discharge of Mortgage Fees - exiting your loan at any time can cost up to $1,000 with some lenders.
Posted on: 17th Jan, 2011 11:42 pm
There is another option for those that do not have 20% down nor want PM¦.but it is not available to everyone which is probably why it isnt talked about much and that is the VA loan . It is very much like an FHA but it doesn have the PMI.

[URL Deleted as per forum rules. Thanks.]
Posted on: 01st Feb, 2011 04:42 am
Please tell me, for we all know that we live in financial crisis, what are the disadvantages and advantages of variable and fixed mortgage?
Posted on: 10th Apr, 2011 09:40 pm
Hi ravykoa!

Welcome to forums!

To know all about fixed rate mortgage, check out the given page:

To know all about adjustable (variable) rate mortgage, check out the given page:

Take a look at these pages. I hope it will help you.

Posted on: 11th Apr, 2011 10:56 pm
Fixed rate loan is ok. Has anyone benefited from the variable rate loans. Is that true that these variable rate loans suddenly have decreased rate of interest ?
Posted on: 25th May, 2011 08:32 pm
Hi unab!

Welcome to forums!

Variable rate loans are initially available at a low rate for a stipulated time period and then the rate changes as per the market situation. If the market records a higher interest rate, then your interest rates will also increase. If the market rates reduce, then you'll be get a low rate.

Feel free to ask if you've further queries.

Posted on: 25th May, 2011 11:15 pm
Thanks Sussane for the information.
Posted on: 26th May, 2011 11:21 pm
My last two mortgages were adjustables. Currently, I'm paying 4.25% on what began as a 5/1 ARM at 4.5%. With rates as low as they've been in recent times, I don't anticipate any negative changes for a while in my rate.

My previous loan, on a different home, was an annually adjustable deal, and I never suffered - rates ranged in those days (between 1996 and 2003) between 3 and 5%, and my adjustments never put me in jeopardy.

There's reason to be nervous about adjustable rates in some circumstances, but they are absolutely not the terrible deals that they've been made out to be.

Beware of those crazy interest-only loans, the option loans, etc. Those are the type that'll send you to foreclosure or the funny farm, whichever comes first.
Posted on: 03rd Jun, 2011 07:47 am
You should stick to a fixed rate loan because in an interest-only ARM..
Posted on: 29th Jun, 2011 05:42 am
Mark please take out the site citation in your posts.
Posted on: 29th Jun, 2011 07:03 pm
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