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Finance Matters: How Numbers Affect Your Life

In reality we all deal with numbers in our everyday lives, from simply buying our stuff in the supermarket, a kid’s mathematics homework up to the computation of your mortgage. One of the biggest decision many of us make at some stages in our lives is getting a mortgage or home equity loan. Finding the best mortgage option is not an easy job so you need to consider several important things before, during and after getting a loan. Mortgage is not a commodity and not merely based on the rate but getting an honest and sound advice as well as responsive support in the entire process of your loan.

We love shopping our things online and we even pay bills and do bank transactions, but it is not a safe and reliable place to engage in loan transactions because there are many unreliable websites. However in terms of information, finding rates and calculation of potential loans, you can always find reputable sites that can offer an expert advice. Mortgage lenders are no just advertising on newspapers but also on the internet, and you’ll notice that there are lenders offering higher rates because they are more reliable or they provide more service or because they have a higher cost structures. Avoid dealing with interest-only loans unless you are planning to move in a short period of time, because you are not building up any equity or ownership in your home. It is highly important to find out exactly the amount of the loan, so it is critical to be fully aware of the fees as there are hidden fees which can be negotiated, and you may also use mortgage calculators free online to help you get an estimate. Good mortgage companies include all the fees and interest rate and these fees may include application fee, loan processing fee, appraisal fee, title search, title insurance, documentation, underwriting, credit evaluation, points and escrow fee. The different kinds of “junk fees” may include photo inspection fee, warehousing fee, computer fee, amortization schedule fee, appraisal review fee, financing statement fee, document preparation fee, credit review fee, administrative fee, overly high notary fees and courier fee.

As compared to banks, the mortgage industry is unregulated and so they don’t play the same rules, and they end up having a different contract at the end. You are not obliged to accept changes in the last minute. You can also terminate your loan anytime. There are several reasons you can terminate a loan such as the loan representative is encouraging you to borrow more than what you need, overstating or understating your income, encouraging you to agree to payments you cannot afford, you’re asked to sign blank documents, and there is no clear communication.

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