...According to experts, you should check on your home loans at least once a year to see if your mortgage still fit your circumstances. Some of the reasons for this is that circumstances changes, example, families either got bigger (new additions to the families - babies, marriage, etc.); mortgage rates change, some people are still carrying around an interest rate from the '90s and just feel comfortable with their payments.
Those with adjustable rate mortgage need to be aware that their rates can jump as much as 5% according to experts. For those who are currently paying interest only, experts point out that they may face increases from 3% to 3.5% which might mean a doubling of their monthly payment.
Avoid paying only the minimum on an option ARM (adjustable-rate mortgage) that lets you decide how much you pay each month. Though this is good for some people, it's not good for all. Those who choose to make a payment large enough each month, can pay off their mortgage within 15 years. If some choose to pay only the interest, then naturally, they will owe the next month.
It is important to shop around for mortgages. Though some choose to use the internet to shop around for rates, working with a local lender can also be very helpful for you in the long run.
When buying a home, you make the decision on who you want the lender to be. Generally, a builder might recommend your using their lender however, it is up to you to decide where you want to obtain financing. Remember, shopping around for the best deal can mean the difference in your keeping your home and your losing it to foreclosure. Remember, if it sounds too good to be true, it probably is.
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