House Buying Fears
Not understanding the loan program.
If you don’t know what type of mortgage you have, you’re not alone. A 2008 poll commissioned by Bankrate revealed that 26% of American homeowners have no idea what kind of mortgage they have.
This is understandable, considering the vast array of different loans on the market and the array of places consumers can now turn to get their loans.
The most important thing you can do, is understand your loan. We understand this, and live by this. (Our Motto – “Get Educated, Not Sold”).
Some loans, such as adjustable-rate mortgages, or ARMs, have interest rates and monthly payments that move up and down with market interest rates. If you have an ARM, it’s important to know when your rate is going to change and to prepare for potential higher monthly payments.
Take these steps to help understand your mortgage:
– Read through your mortgage documents. The conditions of your loan should be spelled out in the papers you signed at closing.
– If your mortgage documents are difficult to navigate, contact your loan service and ask for help.
– Learning the details of your mortgage can also help you decide if refinancing would be beneficial for you.