Top Three Common Mortgage Questions Answered
Taking out a mortgage loan is a big deal. You always want to ensure you put your best step forward in making the decision of a lifetime. There are many questions that come to mind while taking a mortgage. We take the top three mortgage questions which our patrons come to us with and decode them for you to ensure you get the best deal.
What is the ideal down payment I should invest towards my house?
There is no ideal amount that you must put down when purchasing your home as prices of houses vary largely from one to another. Lenders ask for a minimum down payment of 3 per cent and can ask for as high as 20 per cent the only thing you need to keep in mind here is that the lower the down payment, the higher the rate of interest will be charged. If you are in the position to give a bigger some towards the down payment it goes in your best interest. Also, in this way you pay off your loan faster against putting a lower amount towards the down payment.
But do ensure you keep some money other than what you are thinking to put towards the down payment for the closing costs. These are costs that you may not assume you have to pay. These costs include inspection, house appraisal, the fee you need to pay the lawyers, title search costs as well as insurance costs. In normal circumstances these costs are around 5 percent of the mortgage loan value.
How long is my mortgage rate good for?
When you find the mortgage rate you are willing to pay, you may next wonder how long it is good for. If you’ve not done your research you may not know that mortgage rates are subject to changes unless locked. Locked mortgage rates simply mean you arrive at a settlement with your back that in the event of change of rates, the rate you will be paying them will remain the same.
The time period of locking a mortgage rate can be between 15 to 90 days or even more, depending on your contract.
How does a mortgage broker help?
A mortgage broker is someone who handholds you through the process of taking a mortgage. Being in the market and handling the mortgage processes for many people, they are the ones who can guide you at every step and every hurdle you may face right from shopping for your loan and presenting you with a number of lenders to pick from. They also help you out of hurdles such as loan approval issues and provide a more custom experience as opposed to banks.
With these common queries answered, you are one step closer to getting the right mortgage for you without having to worry about what to do in the above situations. If you need any further assistance or have more questions regarding the mortgage do not hesitate to get in touch. We are happy to help.