If you are struggling to understand your mortgage, then take a look at these mortgage facts brought to you by http://www.best-homeloans.co.za/
Mortgage Costs Are Measured With The Annual Percentage Rate
The cost of a mortgageis complicated, as you will need to consider more than just the stated mortgage rate. Not only will you have to pay interest, you will also need to pay originationfees, closing costs and other such fees. Calculating all of these fees will give you a true cost of the mortgage. The APR makes room for all of these costs, which will then give you a better gauge making it easier to compare lenders.
Mortgage Rates Change
Many homeowners believe that mortgage rates are stable, but mortgage rates are also susceptible to outside market forces.
Mortgage rates change quickly, so if you receive a quote in the morning and want to lock the rate in the afternoon, it may have already changed.
Different Rates and Fees
Different lenders will offer different rates on mortgages. Lenders are also able to charge different fee amounts in relation to appraisals, credit checks and title insurance. It is then important to compare lenders so that you are able to get the best rate with the lowest fees.
You Can Refinance Your Mortgage Loan At Anytime
You are able to refinance your mortgage at anytime, but this doesn’t mean that you should. You will need to consider why you want to refinance. Is it because you want a lower monthly payment, do you want to take cash out from your equity or do you want to change the type of loan? Refinancing your mortgage should be carefully considered and should only be undertaken when it makes financial sense.
Get Better Mortgage Rates With Good Credit
When you have a good credit score, you will get a better rate on any type of loan and this includes a mortgage loan. Your credit score holds a lot of weight in terms of the mortgage that you qualify for. Also having a good credit score will mean that different lenders will want your business, which will give you negotiating powers over the closing costs.