Tips for Getting Home Loans from the Right Lenders - Answering Service Resources

Home
>
Mortgage Refinance
>
Tips for Getting Home Loans from the Right Lenders

Tips for Getting Home Loans from the Right Lenders

Getting home loans is possibly the biggest step in an adult's life. It's up there with having kids, landing that big job, starting your own business. Actually, the whole point of those big three landmarks is so you can be able to afford your piece of the American Dream.

But you don't want that dream to turn into a nightmare. Ask around. For many people, buying a house can turn into one of worst mistakes in their life. It's not because their home was a bad idea. More than likely, they signed up for a faulty mortgage. To avoid making the same mistake, follow these steps to signing the right mortgage for you.

First off, home loans come in fixed rates or variable rates. A fixed rate mortgage makes perfect sense at a time such as right now, when the interest rates are so dramatically low. You can buy a house that's worth much more than you could normally afford. However, just because your lender says it's a fixed rate mortgage, don't take him on his word. Be sure to get that rate, and the fixed status, on paper.

The benefit of a rate lock can be explained further by describing exactly how the investment works. First, in a locked interest rate, the lender guarantees a loan at that rate for exchange for payments and fees handed over by the buyer at certain points. The buyer and the lender work their best to close the house before the specified date. Otherwise, the mortgage expires without going into effect.

These locks usually last for one to two months. You'll typically have to pay more for a longer lasting lock. That makes sense, considering that the lock is like taking out insurance on the low rate that you want. Even if the interest rates go up in that month or two, the lock ensures you will have your agreed upon, lower rate. The lender looks at it as insurance, too, that you will borrow the money that you agreed to.

Of course, the trickiest part of these home loans is deciding when to lock. The decision, part intuitive guesswork and part research, comes down to weighing when you will need to pay the lock, how long your mortgage will be, and your "guestimate" of where rates are going.

Mike Long is the successful web publisher of Home-Loan-SuperGuide.com providing valuable tips, advice, and info about a multitude of relevant topics including home loans.

In The News:

Killer Startups
FreeHomeRefi.com - Mortgage Refinancing Resources
Killer Startups, FL - Oct 10, 2008
It is a handful resource for people who want to have their mortgage refinancing done in a simple way. â€œFree Home Refi is committed to providing consumers ...

Sify
ARM Holders Would Do Well to Shop Around Now
Washington Post, United States - 7 hours ago
When Torres refinanced his Georgetown home in 2005, he got a five-year, adjustable-rate jumbo mortgage. (It's a jumbo because it's above $417000. ...
Bush: Don't Panic! At Least Not This Week, Anyway Reason Online
A Solution To The Financial Crisis? VDARE.com
YOUR VIEW: Going beyond the bailout to fix the economy SouthCoastToday.com
PopMatters - Tallahassee Democratall 203 news articles

Christian Science Monitor
Mortgage refinancing wave seen silver lining to market woe
Reuters - Sep 15, 2008
Yields on mortgage-backed securities that also dictate rates lenders can offer also fell, albeit to a lesser degree. The 30-year fixed rate on Monday ...
Applications to refinance mortgages surge as rates drop below 6% USA Today
Fickle Mortgage Market Demands Quick Decisions Washington Post
Lenders' woes could aid borrowers Boston Globe
Newsday - Wall Street Journalall 221 news articles

Wall Street Journal
Principal is key to housing solution
Winston-Salem Journal, NC - Oct 10, 2008
It will not ensure that proper lending standards are applied, nor will it guarantee that households will be able to refinance mortgages where the amount ...
Video: Obama: 'Taxpayers Shouldn't Pick Up Tab' AssociatedPress
Taxpayers, Not Lenders, Would Bear Costs of McCain’s Mortgage Proposal New York Times
McCain's plan for troubled home loans called impractical Newsday
Wall Street Journal Blogs - KDBCall 880 news articles

New York Daily News
Homeowners have new option
Seattle Post Intelligencer - Oct 10, 2008
The Hope for Homeowners plan is supposed to help up to 400000 homeowners who can't afford their mortgage payments and who can't refinance to get a lower ...
New program offers financial help for homeowners The Union Leader
all 10 news articles

Sify
McCain sells mortgage plan
Boston Globe, United States - Oct 11, 2008
Under his plan, the government would spend about $300 billion to buy distressed mortgages from financial institutions at their face values, then refinance ...
What about the economy Obama, McCain? James Klurfeld Newsday
all 981 news articles

Majority backs McCain’s $300B mortgage plan
Bizjournals.com, NC - Oct 10, 2008
John McCain, R-Ariz., that would have the federal government buy distressed and upside down mortgages and refinance them so homeowners can avoid ...

In market for a mortgage?
Portsmouth Herald News, NH - 4 hours ago
What could possibly be wrong with refinancing your mortgage if you can lower your interest rate? Since the Federal Reserve lowered short-term interest rates ...

More homeowners owe more than home's value
Canton Repository (subscription), OH - 9 hours ago
One reason is that as home values slip, growing numbers of would-be borrowers lack sufficient equity to refinance. The falling values also make mortgage ...

Avon Jittery As It Prepares To Refinance Debt
Hartford Courant, United States - 7 hours ago
... been struggling to process just $1 billion a week, a victim of the same credit strangulation that has stalled the mortgage and commercial paper markets. ...

mortgage refinance - Google News

Answering Service ResourceAnswering Service Resource