10 Mortgage MisconceptionsBy Alison Paoli
We have produced our own lists of myths and recommendations, but we were so impressed with Alison's list, that we have done a short version of it here. To read her entire list and all the details go to AOL Real Estate.
Mortgages are tricky and often hard to understand. Because most people only purchase a home every five to seven years, prospective homebuyers understandably don't spend a lot of time in the interim educating themselves about mortgages and the mortgage process.
With the real estate market picking up and mortgage rates prime for refinancing, Zillow has compiled a list of common mortgage misconceptions based off the results of the just released 2013 Mortgage IQ Survey.
Misconception No. 1: Your interest rate reflects the true cost of your mortgage. Your annual percentage rate is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including origination and underwriting fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when shopping for a mortgage, it is best to compare loans based on APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.
Misconception No. 2: Mortgage rates are only released once per day. Mortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day. Because of the rapid changes in mortgage rates and a lender's ability to control what is offered, it is important to shop around for the best rates. Getting multiple loan quotes is highly recommended.
Misconception No. 3: All lenders are required by law to charge the same fees for appraisals and credit reports. There are no laws that require lenders to charge the same fees for services such as appraisals or credit reports. In fact, in order to make their loan quotes more competitive, some lenders may waive charges for such services. Conversely, some lenders may charge higher fees for these services, so it's important to shop around.
Misconception No. 4: I must get my mortgage through the same lender I was pre-approved with.
For the rest of the story, head over to http://realestate.aol.com/blog/2013/05/13/mortgage-misconceptions
If you cruise through this blog, you will find many more insider tips and secrets that will help you maximize your chances for success in the mortgage loan process. In fact, if you click on the link for mortgage loan process, you can learn a lot about what to expect as you move forward on your loan.
If we can be of any help, don't hesitate to call and ask for Bill Rayman at
New Contact Information for Bill Rayman
Bill Rayman Home Mortgage12121 Wilshire Blvd
LA CA 90025
The consultation is free, the application is free. And we will do everything we can to keep all of your costs as low as possible.
Also find helpful mortgage calculators here.