My mortgage financial center is tailored for today's savy consumer. In it we have
included calculators to figure payments, affordability, credit scores, and more.
I have also included a Glossary for a number of common mortgage terms. So have a
look around, and even shop around for the best rates.
Securing mortgage financing is an important step in the real estate purchase process.
There are lots of options to explore to find the fit that's right for you. Figure out
how much you can afford and make your home search more effective. Or if you already
own your home, in today's market, refinancing can be an attractive option.
There is much personal satisfaction in living in a home that you own. A home is still
a valued investment which can have many financial advantages and tax benefits. The
amount of interest you pay on a home loan and the real estate taxes you pay on your
home are among the few major federal tax deductions. Owning a home is the primary
way most people build wealth. Homeownership is also good for our communities, because
families who own their homes are more involved in their local communities and
participate in local events.
Choosing a Lender for your Orange County Home
When looking for a mortgage lender, do yourself and your bank account a big
favor: Do your homework and shop around. In the end, what you want in a lender
is quality, not necessarily the bottom rate. While you're perusing the aisles of
mortgage lenders, think of these points:
Fantastic rates usually spell trouble. Lenders offering fantastic rates may have
just set up shop to take advantage of the refinance market. If local Realtors? do
not recognize them, then they may not be in business later when you need them.
Fantastic rates also usually mean excessive fees and other hidden costs. Do not
first shop for a loan based on rates and fees; first meet with lenders to find out
what the best financing source for you is -- FHA, VA, FNMA or FHLMC. And if you are
told you can get a significantly lower rate from a lender, that lender is probably
a "bait-and-switch" artist. You will not actually be able to get that rate. Run fast.
Experienced and reliable lenders should be able to tell you at the time of your
application whether your loan will be approved. Do not find yourself in the position
of finding out weeks after the application was taken -- and you've paid fees -- that
your loan was denied. Your estimate should closely mirror final loan documents. If
the difference is significantly higher, ask an attorney to review the papers. You
shouldn't have to pay more fees than you were quoted. At the time of application,
get in writing the lender's policy regarding the locking in of rates and fees.
Because there are so many consumer loans on the market and so many different
structures of rates and fees, you need an experienced professional to help you
determine which the best is for you. They should ask whether you expect to be in
your new home longer than five years; whether you want to pay off your loan or lower
your payments; whether your income is fixed, stable or will be increasing; what the
best tax strategy is for your individual situation. If the loan officer doesn't ask
all of the above, that officer most likely doesn't have the experience necessary to
furnish you with a professional mortgage consultation. Regarding discount fees: They
are to be prepaid interest charges. The lower the loan fee, the higher the interest
rate. A mortgage lender who raises the interest rate can then "pay" your closing costs.
Doing so can amount to thousands of dollars, increase your loan amount to more than
you need, and, cost you additional thousands in interest over the life of your mortgage.
Factor that into any lower rate scenario you're considering.
Ask the lender for examples of the loan program selected. The examples should show
totals of payments, totals of interest rates paid and loan balances after selected
lives of the loan.
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