With so many options out there, how do you know which mortgage is right for you. There are many things you should consider before you lock in to a mortgage. I have listed some of variables to look at but having a good mortgage agent just may save you thousands of dollars in interest.
Before you start shopping for a mortgage you may want to check your credit score. Having a good credit score could help get you a good rate of interest on your mortgage. This could save you thousands of dollars over the term of your mortgage. If this is a new mortgage you may want to ensure you have the 20% minimum down payment so you can get a mortgage that will not require insurance. The insurance could run approximately $100.00 a month depending on the size of your mortgage. This will add up over the years with money that could go directly on reducing your principal.
You want to comparison shop. There are a lot of institutions with varying rates. You can go online to shop or deal with a good mortgage agent that will do the shopping for you. The rates that are posted are not necessarily the best rates. Even if you go to your bank the loan officer will not always offer the best rate available. If you do not question them and willingly accept what they offer you, you may be paying thousands of dollars more over the life of the mortgage.
When you pick a good mortgage agent they will work with you to sift through the different options and terms to give you the mortgage that will work with your budget and needs. They will ask a lot of questions to see what is important to you. Whether you take a variable rate mortgage for a short term or a fixed rate mortgage for the long term, the mortgage agent could save you thousands of dollars and lots of leg work from doing it yourself. The process of mortgage shopping should be less stressful having someone you trust look after your best interest.
For more information, check our website for an upcoming workshop on Mortgages.